This year has been slow for businesses seeking to go public through initial public offerings (IPOs).
Due to the recent stock market crisis, rising prices, and volatility in international politics, many privately owned companies have decided not to go public in 2022.
Adena Friedman, CEO of Nasdaq Inc, projected in November that the first half of 2023 would be slow for IPOs due to investors’ persistent conservatism. However, that activity would increase in the second half of the year.
We have identified three IPOs that appear to have the best chance of success, with the aim that the year 2023 will present a more favorable atmosphere for going public.
Stripe is a software platform planning an IPO, one that allows the processing of online payments and serves as a credit card transaction gateway. This dramatically simplifies the checkout procedure for businesses.
Its software-as-a-service (SaaS) offerings make performing business transactions simple and time-saving for online businesses. Furthermore, it safeguards its consumers by avoiding suspicious transactions and reporting any possibly fraudulent payments.
The firm’s technology enables businesses to quickly collect payments and move money across international borders. Amazon (NASDAQ: AMZN), Alphabet, Shopify (NYSE: SHOP), Lyft, and Twilio are just a handful of the well-known customers of Stripe. Using its network, over fifty separate companies processed at least $1 billion in transactions, and the company handled $640 billion in payments total in 2021.
During the pandemic, Discord, a start-up specializing in mobile and internet communication, drew the attention of millions of new members as whispers of an upcoming IPO grew louder.
Admirers of video games, in particular, are great fans of the communication network Discord, but more and more people are utilizing it for other purposes. The firm provides text, audio, and video communication via subject-specific channels. Unlike other communication apps that make money through advertising, this one makes money through premium memberships.
Discord filed papers for an IPO with the SEC in 2021; however, the weak market may have hampered plans for an initial public offering. The corporation’s recent efforts hint at an initial public offering sometime in early 2023.
According to sources, the company has turned down numerous acquisition bids, including one from Microsoft (NASDAQ: MSFT) and one from Amazon. In recent years, the company has hired executives previously in charge of bringing other technological companies public.
Discord was projected to be worth more than $15 billion at its most recent private fundraising round in late 2021; however, this amount may have subsequently been reduced due to the bad market’s effect on technology company valuations, and could even delay the IPO.
Finally, while Databricks may have been too late to participate in the IPO frenzy that swept the IT industry in 2020 and 2021, an IPO is supposedly still in the works.
Data scientists and analysts may collaborate on digital information warehousing and artificial intelligence applications using the company’s cloud-based platform.
Databricks attained a valuation of more than $38 billion in the summer of 2021 after completing a $1.6 billion private funding round. That valuation, like that of other internet companies, has surely declined.
Despite this, the company announced in August 2022 that it currently produces more than $1 billion in recurring revenue from its users.
The company, which has hundreds of partners, including Microsoft and Amazon, has not yet scheduled an IPO. Given the beating that tech stocks have taken, it is very likely that plans to go public will be put on hold until market sentiment improves.
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