The grand illusion of the IPO market has finally come crashing down. Last year’s sizzle has turned to dust, as the promised land of public listings remains an elusive dream. The few lucky souls who managed to secure IPOs this year are a fleeting exception, a cruel reminder of the fleeting nature of investor optimism.
We’ve all been duped into believing that the IPO market would spring back to life in 2024, only to be left with a paltry four venture-backed tech IPOs by March and April. But what about the rest? The truth is, the macro conditions are all wrong. The presidential election, interest rates, and economic uncertainty are creating a perfect storm that will keep the IPO market in a state of limbo until at least 2025.
So, who’s not going public this year? Well, that’s a long list. Skims, the underwear and loungewear brand valued at nearly $4 billion, is just one example. Kim Kardashian’s baby is going to have to wait until at least 2025 for a public debut. Chime, the 12-year-old challenger bank and fintech startup, is another no-show this year. Its valuation may have risen 25% in the last six months, but it’s still waiting for the right moment to strike.
Then there’s CoreWeave, the AI company that raised a whopping $1.1 billion in May. You might think that’s a sign of strength, but no, it’s just a hint that they won’t be listing anytime soon. And don’t even get me started on Sword Health, which has announced plans to IPO… in 2025. Figma, another design unicorn, is also holding a tender offer, which is code for “we’re not going public this year.” And Plaid, the B2B fintech, has flat out said it has no plans to IPO in 2024.
But what about Stripe and Databricks? Ah, those are just a couple of the few companies that are holding their cash close to their chest. They’re building their valuations, not listing anytime soon. Canva, the design startup, is planning its IPO for at least 12 months from now, if not sometime in 2026. Good luck with that.
So, the next time you hear someone whispering sweet nothings about the IPO market, remember: it’s all just a fairy tale. The reality is that most companies are holding off on public listings until the winds change. And until then, investors are left with nothing but crumbs.
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