In 2024, the IPO market rebounded, although not to full strength. Proceeds surged by over 50% compared to the previous year, and several high-profile IPOs, including Reddit, Viking, Rubrik, and Astera Labs, generated significant buzz. However, uncertainties such as delayed rate cuts, volatility, and abundant private funding led many companies to push their IPO timelines. This cautious sentiment has tempered the optimism that the IPO market’s revival was imminent. Nonetheless, the groundwork laid in 2024 suggests a more stable market than any time over the past three years.
The traditional IPO landscape kicked off strong in the third quarter, with proceeds already surpassing total figures from both 2022 and 2023. There was a notable uptick in stock prices for these IPOs, which collectively outperformed the S&P 500 by nearly 12%. July saw the busiest week for IPOs since November 2021, led by a cold-storage operator that raised an impressive $4.4 billion. This was the largest IPO since Q3 2023. However, activity slowed considerably in August as companies awaited more clarity on the Federal Reserve’s rate policy and the upcoming U.S. elections, which caused some firms to delay their IPO plans.
Despite the mid-year slowdown, the third quarter still saw 13 traditional IPOs raise $7.3 billion. This indicated healthy participation across a wide array of sectors, suggesting diversification in the companies going public. Special Purpose Acquisition Company (SPAC) IPOs, while still slow, continued to contribute with 18 SPACs raising over $3 billion, marking the highest total for SPAC fundraising since Q1 2022. The resilience of these markets provides cautious optimism that, despite the challenges, the IPO sector has a stronger foundation than in recent years, though future hurdles remain on the horizon.
The IPO market in 2024 was marked by some successes but overall remained underwhelming. Despite notable debuts from companies such as Reddit, NANO Nuclear Energy, and Astera Labs, the total capital raised was disappointingly low.
As of mid-December, just 121 companies had gone public, raising $27.3 billion—a figure that stands at roughly half the amount raised in pre-pandemic years.
This underperformance reflects the ongoing caution in the market, which continues to see fewer IPOs than the historic averages of previous years.
As we look ahead to 2025, the outlook for the IPO market remains ambiguous. The potential for a new administration could offer some support to market conditions, providing a possible lift. However, there are also considerable risks, notably the uncertainty surrounding former President Donald Trump’s tariff policies, which may induce caution among businesses and prevent some from proceeding with their IPO plans. That said, for companies possessing the right characteristics—size, strong growth potential, a demonstrated path to profitability, and a public-company-like operation—the market remains open to those with the preparedness to capitalize on timely opportunities.
In our view, if the economic environment aligns with our base case of a soft landing, it is conceivable that the IPO market could see significant momentum in 2025. As we have witnessed in previous cycles, market windows can open and close with great speed, and companies must be ready to move when the timing is optimal. The key will be for businesses to ensure they are well-prepared—having the necessary resources, a proven track record, and a scalable business model—so they can seize opportunities as they arise. By doing so, they will be positioned to capitalize on a potential rebound in the IPO landscape. With the continued prospect of rate cuts, combined with a robust pipeline of companies seeking to go public, the groundwork is set for an uptick in IPO activity as market conditions improve.
Why do companies go public?
The decision to go public is often driven by a variety of motivations. A primary reason is the desire to raise capital, which can help fuel expansion, enhance market presence, and provide liquidity to early investors and employees. Technology firms like Databricks and Discord, for instance, seek to capitalize on rapid growth and robust market positions, while fintech players such as Monzo and Revolut look to public markets as a vehicle to broaden their customer base and service offerings.
Understanding IPO valuations
Valuations for IPOs can differ greatly, depending on a host of factors. Shein, for example, is valued at approximately $66 billion, making it one of the most eagerly awaited IPOs in recent memory. Databricks is priced at a $43 billion valuation, while fintech players like Monzo and Starling Bank come in around $5 billion. These valuations are shaped by multiple considerations, including the company’s growth potential, demand for its products or services, and historical financial performance.
Evaluating the risks and rewards of trading IPOs
Participating in IPOs presents both opportunities and risks. Newly minted public companies are often volatile, and there is no guarantee of price appreciation. A variety of factors, including the company’s financial health, the broader market environment, and investor sentiment, will ultimately determine the success of the stock. It’s crucial to balance the potential for significant returns with the real possibility of losses, especially in the early stages after a company goes public.
Key considerations for trading IPOs
Growth Potential: Certain sectors like fintech and AI present appealing opportunities, but growth projections may not always live up to expectations.
Market Sentiment: The performance of IPOs is often closely tied to prevailing market conditions. A favorable market can propel prices upward, while negative sentiment can have the opposite effect.
Regulatory Challenges: IPOs can face regulatory hurdles that, while not necessarily insurmountable, can slow down a company’s stock price growth and, in some cases, lead to significant downturns.
Diversification: While IPOs can offer an opportunity to diversify a portfolio, care must be taken to avoid becoming overexposed to newly listed companies, which can present higher risks.
Identifying a successful IPO in 2025
In 2025, a successful IPO will likely be one that presents strong financials, compelling growth prospects, experienced management, and solid positioning within a competitive market. A keen understanding of the prevailing market conditions is also critical, as IPOs tend to thrive in bullish environments where investor confidence is high and economic conditions are favorable.
Considerations for investing on the first day
Investing in an IPO on its debut day offers both significant opportunities and notable risks. While some stocks surge upon listing, others may falter, sometimes dropping below their initial offering price. For investors, it’s important to weigh the long-term potential of the company against the immediate risks. A balanced portfolio can provide a safety net for those looking to manage the inherent risks that come with the unpredictability of new public listings.
The impact of market sentiment
Market sentiment plays an essential role in the performance of an IPO. A bullish market can lead to heightened interest in IPOs, driving their prices up. Conversely, in a bearish environment, IPOs are often underwhelming, with stocks failing to perform to expectations. By monitoring economic indicators, investor behavior, and broader market trends, investors can gauge sentiment and make more informed decisions about which IPOs to pursue.
Lets take a look at the most anticipated IPOs for 2025
Company: Cerebras
Valuation:$7-8 Billion
Sharks Opinion:
Cerebras, the AI chip developer, has long seemed poised for an initial public offering (IPO). It filed for one in September, aligning with a favorable market for AI chipmakers. However, the company postponed its IPO after encountering delays related to a U.S. national security review of UAE-based G42’s minority stake in the business. Despite this, a public debut remains all but inevitable. The timing is ideal for AI chipmakers, with Nvidia’s massive rise and growing investor interest in the sector.
While Cerebras is on an accelerated growth trajectory, it remains relatively early in its revenue generation. In the first half of 2024, it reported $136 million in revenue, while its total revenue for 2023 stood at $78.7 million. Industry sentiment suggests that any company with annual recurring revenue (ARR) below $400 million is considered “subscale,” indicating that while the company is growing rapidly, it has yet to achieve full maturity in the marketplace.
Founded in 2016 by Andrew Feldman and his team, Cerebras began shipping products in 2019. The company specializes in high-performance computing chips, particularly for training and inference tasks related to large language models (LLMs) and other AI models. Cerebras distinguishes itself from competitors like Nvidia by using a “wafer-scale” approach to chip manufacturing. Instead of cutting a large silicon wafer into multiple individual chips, as Nvidia does with its GPUs, Cerebras keeps the entire wafer intact, creating significantly larger chips.
These larger chips, which hold the distinction of being the largest chips ever produced, offer considerable advantages over Nvidia’s offerings. On a per-chip basis, Cerebras chips boast a greater number of cores, superior memory capacity, and enhanced memory bandwidth, which make them particularly well-suited for large-scale AI model training.
Cerebras’ AI Supercomputer, a massive array of these colossal chips, consists of 2,048 CS-3 systems designed for intensive model training and inference tasks. This cutting-edge technology positions the company to become a key player in the rapidly expanding AI industry, and it’s only a matter of time before it enters the public market—when it does, it will likely have the capital and market presence to make an immediate impact.
Company: Klarna
Valuation: $14.6 Billion
Sharks Opinion:
Klarna, the buy-now, pay-later (BNPL) service, has taken the significant step of confidentially filing for an initial public offering (IPO). Founded in 2003, the Stockholm-based company is now approaching its 20th anniversary. Its valuation has undergone dramatic fluctuations; in July 2022, Klarna was valued at $6.7 billion, a stark contrast to its 2021 peak valuation of $45.5 billion. The company’s 2024 financial performance shows signs of improvement, with revenue for the first half of the year reaching $1.2 billion—an increase of 27% from the previous year—and an adjusted operating profit of $62 million.
Klarna attributes its operational efficiency to artificial intelligence, especially in cutting customer service costs. The company also highlighted its robust performance in the U.S., reporting a 38% increase in U.S. revenue compared to the same period in 2023. This positions it favorably in a competitive market, with U.S.-based rival Affirm valued at $21.6 billion in December 2024.
The BNPL sector has become increasingly competitive. In the U.S., roughly 9% of consumers now use BNPL services, according to the Federal Reserve Bank of Boston. Klarna faces stiff competition from Affirm, PayPal, and Block (formerly Square), all of which have significant market shares and continue to drive the evolution of the BNPL landscape. As Klarna prepares to go public, it enters an environment shaped by shifting market dynamics, regulatory pressures, and economic concerns, but its growth trajectory and technological advancements may position it well for a successful IPO.
Company: Coreweave
Valuation: $24 Billion
Currently, Seeking $35 Billion on IPO
Sharks Opinion:
CoreWeave, a startup offering access to Nvidia’s highly coveted AI chips through its network of data centers, is poised for a major public offering, aiming for a valuation surpassing $35 billion in 2025. This ambitious move follows extensive funding rounds, including a $1.1 billion equity raise in May and $7.5 billion in private debt financing. The company has secured significant backing from firms like Blackstone, Magnetar, and Goldman Sachs, and recently saw its valuation rise to $23 billion after investments from Cisco and prospective investments from Microsoft.
Founded in 2017 as a cryptomining firm, CoreWeave pivoted to providing GPUs for AI applications and plans to expand its AI infrastructure to 28 data centers by the end of 2024, with an additional 10 by 2025. This expansion is supported by robust capital raising efforts, including a $650 million deal led by Morgan Stanley, Goldman Sachs, and JPMorgan. CoreWeave’s strategic growth in the AI space signals its increasing relevance in an era dominated by AI’s rapid acceleration.
Company: Chime
Valuation: Seeking $25 Billion on IPO
Sharks Opinion:
Chime, the San Francisco-based fintech company offering bank-like services via an app, has confidentially filed for an IPO, with plans for a 2025 listing. After raising $2.65 billion, Chime provides customers with a variety of banking services, such as high-yield savings accounts and paycheck advances of up to $500 ahead of payday. Initially valued at $25 billion during the technology boom of 2021, the company has since seen a slight dip in valuation, now sitting at $21 billion. Chime recently appointed Morgan Stanley to lead the IPO underwriter role, further reflecting its aspirations to enter the public markets by 2025.
During its rise, Chime achieved substantial recognition for its innovative approach to banking, targeting individuals underserved by traditional financial institutions. Customers can access credit-like features, including receiving direct deposit payments before payday, through its user-friendly app. The firm has maintained a business model based on interchange fees, collecting a percentage on each transaction, ranging between 1.15% and 3.15%. This method mirrors traditional credit companies, and Chime has been able to scale effectively within the competitive fintech landscape.
However, Chime’s ambitions are not solely focused on growth within its core business. The company has also expanded its visibility by signing a partnership with the NBA’s Dallas Mavericks, placing its brand on the team’s jerseys. This move reflects a broader marketing strategy to reach new audiences and increase brand recognition. Despite some of the challenges fintech companies have faced with fluctuating valuations and market conditions, Chime’s strong revenue model and unique offerings continue to position it as one of the more promising candidates for an IPO in 2025.
The current market sentiment is somewhat favorable, with signs of optimism returning to the IPO market, partly buoyed by political developments such as Donald Trump’s return to presidential office. Although Chime’s valuation saw a steep decline from the dizzying highs of 2021, it remains a noteworthy player in the fintech space with significant market potential. With its strategic approach to banking services, strong revenue generation from transaction fees, and rising public visibility, Chime is preparing to capitalize on favorable market conditions and advance toward a successful public offering. As the company prepares for its 2025 listing, it could further cement its position in the rapidly evolving financial services sector.
Company: Medline Industries
Valuation: $50 Billion
Sharks Opinion:
Medline, a key player in the global medical supply sector, is planning an IPO in 2025, with a projected valuation of $50 billion. The company, founded in 1966 by James and Jon Mills, is renowned for manufacturing and distributing a wide range of medical products, from surgical equipment to hospital essentials. Medline’s extensive international operations span over 100 countries, and its workforce exceeds 43,000. After being acquired in 2021 by private equity in a $34 billion deal, Medline has become the largest provider of medical-surgical products and supply chain solutions. Under new leadership, Medline’s upcoming public offering may attract significant investor interest.
Company: Newsmax Media
Valuation: N/A
Sharks Opinion:
Newsmax, a media network that reaches over 40 million Americans across various platforms, is preparing for an IPO, aiming to raise up to $75 million. Founded in 1998 by Christopher Ruddy, the company launched its cable news channel in 2014. In addition to its television broadcasts, it also offers free streaming via YouTube and a proprietary app. Newsmax projects 2024 revenues of $180.5 million, up from $135.3 million in 2023. Approximately two-thirds of its revenue comes from broadcasting, with the remainder from digital operations.
Company: Stubhub
Valuation: $16.5 Billion
Sharks Opinion:
StubHub, the online ticketing marketplace, had been eyeing a public offering for some time, particularly with the resurgence of live events following the pandemic. Based in San Francisco, the company had targeted a 2024 IPO, hoping for a valuation of at least $16.5 billion, which is a significant jump from the $4.05 billion Viagogo paid in 2020 to acquire it. However, in July, StubHub decided to delay the IPO, citing sluggish market conditions. By August, the company had hired a new CFO, Connie James, previously from Light & Wonder. Despite the postponement, the market remains a key focus, and if conditions improve in 2025, StubHub is likely to revisit its IPO plans.
The company’s valuation had been buoyed by the return of large-scale live events, and StubHub is strategically positioning itself for a future offering. It’s worth noting that the company’s previous private funding rounds had been aligned with its IPO target valuation. The marketplace has remained resilient even in the face of market volatility, indicating its strong presence in the industry.
Company: Discord
Valuation: $14.7 Billion
Sharks Opinion:
Launched in 2013, Discord is now poised to mark a decade of connecting people worldwide. Initially conceived as a communication platform tailored for gamers, it has gradually transformed into a dynamic social hub for a variety of online communities, catering to interests far beyond the gaming world. With a formidable roster of investors backing it— including Benchmark, Tencent, and Sony Interactive Entertainment—the company has raised nearly $1 billion. Over the years, Discord has leveraged its growing user base to attract high-profile investment rounds.
The latest significant funding round came in late 2021 when Discord secured a $500 million Series H investment, with Dragoneer Investment Group at the helm. This funding round valued the company at a robust $15 billion, underlining Discord’s strong market presence. This valuation reflects the platform’s rapid rise, driven by its user-friendly interface, reliable voice chat functionality, and commitment to creating spaces where people can gather, share, and create. While initially designed to meet the needs of gamers, Discord’s versatility has made it a go-to platform for creators, educators, musicians, and almost every type of community imaginable. This broadening of its user base has helped Discord cement its place as one of the most engaging social platforms globally.
However, as Discord approaches its tenth year, the company has turned its focus toward diversification—an effort that signals its readiness for a potential public offering. While private investments have bolstered its financial position, the company is now looking to build on these foundations by expanding its revenue sources. In late 2021, as part of its strategic move towards IPO readiness, Discord rolled out a range of new products aimed at enhancing user engagement and maximizing monetization. Among the most innovative is the introduction of gamified advertising features, such as Video Quests, which incentivize users to interact with video ads. This initiative represents a shift toward a more sustainable revenue model, beyond the premium features that had previously been its main source of income. These video ad features function much like a loyalty program, rewarding users with incentives for engagement.
The move to diversify revenue through gamified ads is not unlike the path taken by other tech companies preparing for public offerings. Reddit, for instance, began incorporating targeted advertising and data licensing into its business model as it worked toward its successful IPO in March 2024. By offering advertisers a more personalized, engaging experience while staying true to the platform’s community-centric ethos, Reddit managed to reduce its losses and move closer to profitability, ultimately setting the stage for a successful debut on the public markets.
For Discord, the road to an IPO remains to be fully mapped out, but it is clear that the company is taking steps to ensure a successful transition from a privately funded, high-growth startup to a publicly traded entity. Much like other tech giants that have made similar moves, Discord’s diversification of revenue streams, its expanding user base, and its focus on sustained innovation position it as a compelling contender in the race to go public. If market conditions remain favorable, it would not be surprising to see Discord follow in the footsteps of other social media and tech platforms that have flourished after making the leap to public markets. Ultimately, Discord’s strategic initiatives are shaping the company’s path, providing investors with a potentially lucrative opportunity if they decide to take it public in the near future.
Company: Liquid Death
Valuation: $1.1 Billion
Sharks Opinion:
The canned water company has not made any formal filings yet, but it has hired Goldman Sachs to handle its public offering and acknowledged it’s considering an IPO. With a valuation of $1.4 billion, it’s already a power player in the beverage market—and in June it shored up its executive ranks, hiring beverage veteran Karim Sadik-Khan as CFO. Sadik-Khan was previously the North American CFO of spirits giant Beam Suntory. He also held finance roles at PepsiCo and Keurig-Dr Pepper.
Companies We Want to go public
Company: Anduril
Valuation: $14 Billion
Sharks Opinion:
Anduril Industries, a fast-emerging defense company, has gained attention for its innovative approach to autonomous solutions. At the heart of its offerings lies the Lattice operating system, an open software platform that integrates cutting-edge hardware systems. Though privately held, speculation suggests that Anduril could pursue an IPO in the coming years.
The company’s product portfolio includes sophisticated unmanned aerial vehicles (UAVs) such as the Ghost drone, as well as robust counter-drone systems like the Anvil. Ground-based solutions, exemplified by the Sentry Tower, offer high-tech surveillance and reconnaissance in challenging environments. Anduril’s products are designed to operate autonomously in harsh conditions, enhancing operational capabilities.
Anduril stands apart from traditional defense contractors by addressing pressing issues like border security and base protection with forward-thinking, tech-driven solutions. For instance, its technology is actively supporting U.S. Customs and Border Protection in border surveillance and is instrumental in bolstering force protection at military bases. The company’s proactive approach sets it apart in an industry often criticized for its slow pace in embracing innovation.
Central to Anduril’s rapid growth is its deep collaboration with government and military stakeholders, ensuring that its solutions align with the specific needs of defense operations. This focus on client-centric innovation, combined with the company’s Silicon Valley ethos, positions Anduril as a disruptive force in the defense sector. As it continues to gain momentum, the potential for Anduril to redefine how defense technology is developed and deployed becomes increasingly evident. The company’s trajectory suggests it could soon stand alongside the most established players in the defense industry.
Company: Redwood Materials
Valuation: $5 Billion
Sharks Opinion:
Redwood Materials, a pioneering company in the field of recycling lithium-ion batteries, is garnering considerable attention for its role in addressing the growing demand for sustainable practices in the electric vehicle (EV) sector. Despite being privately held, the company’s impact continues to rise. Recently, the U.S. Department of Energy acknowledged Redwood’s work, awarding them a $2 billion conditional loan commitment. This recognition, along with the announcement of a $997 million Series D funding round, highlights Redwood’s ambitious expansion plans. The company also intends to construct a $3.5 billion EV battery recycling facility in South Carolina, marking a significant step toward enhancing U.S. battery processing capabilities. As such, Redwood Materials is poised to play a critical role in shaping the future of battery recycling and the broader shift towards sustainable energy.
Company: Stripe
Valuation: $60 Billion
Sharks Opinion:
Several prominent fintech unicorns are gearing up for potential public listings, with Stripe standing out as one of the most highly anticipated IPOs for the past several years. While the payments giant may not be part of the 2025 batch of IPOs, it is clear that the company, which has successfully made strategic moves in recent years, is eyeing the public markets in the near future. Co-headquartered in Dublin and San Francisco, Stripe was valued at $65 billion in early 2024 and processed over $1 trillion in payment volume in 2023, further solidifying its position as a potential future public market player.
Company: Databricks
Valuation: $62 Billion
Sharks Opinion:
In December, Databricks CEO Ali Ghodsi made a strong case for postponing the company’s IPO. He pointed out that launching an initial public offering in 2024 would be ill-timed due to the regulatory uncertainties brought on by the upcoming election year. According to Ghodsi, a 2024 IPO would also face complications related to lock-up periods, delaying employee liquidity and creating an unmanageable wait. As Ghodsi discussed at Axios’s AI Summit, the current investment climate for AI is at a peak, which further contributes to the wisdom of waiting for more stable market conditions before going public.
Despite these cautious statements, Databricks, a provider of advanced cloud-based data analytics and artificial intelligence solutions, is far from facing financial difficulties. In fact, the company recently raised a substantial $10 billion in Series J funding, with a $62 billion valuation—an impressive feat that speaks to its strong position in the market. This latest fundraising round was led by some of the most prestigious venture capital firms, including Tiger Global, Thrive Capital, and Andreessen Horowitz. In 2019, Andreessen Horowitz also led the company’s $400 million Series F, which continues to be a key investment milestone in the firm’s history.
Ghodsi, with his deep ties to the venture capital world, emphasized that although he has no immediate plans to take the company public, the sheer scale of Databricks’s growth means that, when the time is right, an IPO would provide significant returns for its investors. Currently, the company’s strategy appears to center on securing its position as a leader in cloud-based solutions and AI while maintaining its robust financial backing. Nevertheless, as the company continues to expand its offerings in the data and AI sectors, it seems inevitable that the temptation to capitalize on its current valuation will continue to loom large in the coming years.
Company: Skimms
Valuation: $4.1 billion
Sharks Opinion:
Kim Kardashian’s shapewear brand, Skims, has reportedly set its sights on an initial public offering (IPO) in 2025, as revealed by sources from The Information. The company, which has flourished over the past few years, owes much of its success to Kardashian’s high-profile presence and strategic celebrity endorsements. Skims appears ready to capitalize on a favorable market environment, with co-founder Jens Grede hinting at the possibility of a public offering. This follows a robust $270 million funding round earlier in the year, valuing the company at $4 billion. Some analysts suggest that Skims could be worth double this valuation by the time the IPO materializes.
To prepare for the eventual offering, Skims has appointed Andy Muir, a former Nike executive, as Chief Financial Officer. This move is seen as a key step toward positioning the brand for a successful debut on the public markets. As part of its expansion, Skims is also planning to open a 5,000-square-foot flagship store in Los Angeles by 2024, with additional locations in high-tourist cities such as New York City.
Skims competes in the crowded women’s shapewear and swimwear market alongside established players like SPANX, ThirdLove, and MeUndies. However, its most direct competitor is Savage X Fenty, the celebrity-led loungewear brand founded by singer Rihanna in 2018, which is valued at over $3 billion. While the race for dominance in the shapewear sector is intensifying, Skims is leveraging its celebrity cachet and consumer appeal to make its mark in the retail world, potentially gearing up for one of the most high-profile IPOs in recent memory.