Introduction
The IPO market hasn’t exactly had a banner year this year. Venture capital has plummeted, and fewer businesses have risked entering the public market.
Will IPOs make a return in 2023? What will it take to defrost the public market? Here are Crunchbase News’ top selections for new tech companies going public. Connect with Tyke Invest will assist you in this.
And if you recognize any of them, it’s because they are: Many of them were anticipated to go public this year in our 2022 version of this list. We had no idea the pre-IPO startups would crash. So here we are again, presenting opinions on who could make their public debuts if and when IPOs resume.
List of projected initial public offerings in 2023
1. Stripe
Last year, it was predicted that Stripe would be valued at $100 billion. Since then, the company’s founders, the Collison brothers, have said they are preparing for “leaner times” and laying off 14% of its workforce. Stripe gets cold whenever firms like Amazon, Apple, and Facebook sneeze. Stripe will look for an improvement in their performance sooner rather than later. Stripe, the new tech companies going public in 2023.
Stripe filed an IPO registration statement with the SEC a year ago, but the timing has yet to be confirmed. The big VC money that the firm has gotten, like others on this list, implies that it cannot delay forever, even if the market isn’t what it was two years ago. Its position as the world’s leading payment processor makes it a solid long-term option, even if e-commerce revenues fall short to medium-term.
2. Mobileye
Intel subsidiary Mobileye is expected to be one of the year’s most sought-after IPOs. Because microchips and semiconductors are used in almost everything, the world’s burgeoning need for them is unlikely to subside like social media. Mobileye develops chips and software for self-driving vehicle technology and sophisticated driver-aid systems currently found in most automobiles.
Intel paid a staggering $15 billion for the firm in 2017 and wants to remain the majority shareholder after the prospective IPO, which is expected to take place in the first part of new tech companies going public next year. Its application for an IPO with the SEC indicates that it values the firm at $17 billion – significantly below the projected price, but maybe a hint that the listing would proceed regardless of market circumstances. In 2021, the company’s sales will reach $1.4 billion.
3. Databricks
It isn’t easy to find an IPO-related generalist piece from the last two years that doesn’t reference Databricks in some manner. Its revenue has increased from little more than $400 million in 2021 to more than $1 billion in 2022, making it one of the few bright spots in 2022. Furthermore, that income is subscription-based, which is a significant draw for investors, even more so in a market with such volatile cash flows.
Another thing to keep in mind regarding Databricks is that a year after originally considering an IPO, its AI-driven software should be considerably more advanced (following the logic of the rapid advancements seen in artificial intelligence over the past few years). It also has funding from the “big four” cloud providers: Alphabet, Salesforce, Microsoft, and Amazon, implying that it has the kind of smart money that most unlisted firms only dream about.
4. Vinfast
Vinfast is a Singapore-based subsidiary of the Vingroup, a Vietnamese corporate empire worth $5 billion. Vinfast manufactures electric cars (EVs) and is the latest in a seemingly never-ending string of EVs to go public. It intends to utilize the profits of an IPO to continue its fast development, create manufacturing in the United States, and capitalize on Americans’ current enthusiasm for EVs.
The corporation previously indicated its desire to raise $60 billion via an IPO, which seemed unduly optimistic in the current environment. We have reduced this to $30 billion, recognizing that increased competition in the EV field would not help the listing price apart from a volatile market. Another sting in the tail: Vinfast has said that their EV facility will not be ready to manufacture until 2024, a risky bet in a market desperate for stability.
5. Reddit
Reddit is one of just a handful of firms on this list registered to host an IPO in late 2021 without specifying a date. For the next year, anticipation has grown about when that data will be released. Despite its enormous daily active users (DAU), Reddit is banking on a comeback in digital advertising. With Meta seeing declining user numbers and engagement across its platforms, the market may not need another competitor like Reddit.
Reddit’s income plummeted from an anticipated $421 million in 2021 to $350 million due to the digital advertising decline. Even though this figure represents a 150% increase over the previous year, Reddit, which has a framework that is more comparable to Twitter than other social media networks, may gain from Elon Musk’s decision to take his newest acquisition private. However, the listing price will remain much lower than a year ago.
6. Instacart
Few firms’ valuations have fallen precipitously as Instacart’s in the last year. With an IPO on the horizon, the business aimed for a $50 billion value. However, with the number of individuals ordering meals online dropping significantly during the pandemic, the corporation took the unusual step of revaluing itself in early 2022 – by more than 50% to $24 billion. In the same breath, corporate leaders announced that an IPO in 2022 will be postponed. Instacart is the best investments in private equity.
Meanwhile, the management team is cutting spending to take this new tech companies going public in 2023. The split of the company’s revenues will be a major concern for investors. Too much reliance on delivery from a single source (for example, pharmacies or large box merchants) may cause the supply to seem erratic. It will still be significant, and 2023 is the year.
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7. Chime
Chime registered for its initial public offering (IPO) in March 2022. Still, there was one problem: Fintech equities had fallen by about 40% in only six months by the time February 2022 rolled around. Others, such as Paypal and Block, were down more than 60%. The Chime management team read the room, and it informed them that the pre-IPO market should be postponed until a more suitable time came. Fintech stocks scarcely moved in 2022, indicating that that time did not arrive this year.
However, 2023 might be the year when it occurs. The firm is in the same boat as many other IT companies seeking an IPO: on the one hand, the market at the time of the planned IPO may not be favorable, but on the other hand, it is under pressure to list before other non-listed rivals to get investor support before the others. In keeping with the entire fintech market, we reduce the original listing price of $40 billion by 40%.
Bottom Line
The pre-IPO marketing process is a labyrinth of paperwork and files that necessitates using excellent IPO virtual data room services. If you are planning an IPO shortly, don’t hesitate to contact us to discuss how we may assist you and your business in simplifying the process and ensuring that your firm obtains the highest potential value upon listing.
