Startup News: Sweden’s Klarna plans to launch IPO in U.S. 

In December, fintech firm Klarna made Forge Global’s list of five companies likely to go public this year. At the time, however, it wasn’t clear which country the Stockholm-based company would choose to debut its shares.

Last week, however, Klarna CEO Sebastian Siemiatkowski ended the speculation. In an interview with Bloomberg, he said that the company is eyeing an exchange in the U.S. for an IPO sometime in the near future. Siemiatkowski added that the U.S. is a “natural choice” for an IPO because it’s the company’s largest country market by revenue, dwarfing other countries such as the U.K. and Germany.

Founded in 2005, Klarna provides payment processing for the e-commerce industry. According to Bloomberg, the company saw its valuation cut sharply in the past year to $6.7 billion from about $45.6 billion after weakened business conditions caused by rising interest rates. But the valuation rose to $7.85 billion in December 2023 after the company reported its first quarterly operating profit in four years.

Figma offers improved benefits package to workers after Adobe takeover Shelved

In the wake of a failed acquisition by software maker Abode, Figma has come up with a consolation prize to cheer up workers.

According to Reuters, Figma, a cloud-based platform for collaborative design in corporate team environments, will improve equity packages for employees who remain with the company and also offer an optional program to those who wish to leave the company.

Last month, Adobe — the maker of Photoshop, Acrobat Reader, and other enterprise and consumer software — dropped its $20 billion deal to buy Figma after concluding that there was “no clear path” to winning antitrust approvals in Europe and the U.K. Founded in 2011, San Francisco-based Figma had a valuation of $10.38 billion as of June 2021.

Figure Technologies seeks to launch a Stablecoin

Figure Technologies, the lending-focused fintech that uses the blockchain, is seeking approval to issue an interest-bearing stablecoin.

According to Bloomberg, “The move is a novel attempt at creating a new class of stablecoins with federal legitimacy, and if successful, Figure will be offering the first stablecoin regulated as a security in the U.S."

Bloomberg writes that Figure is seeking to register the stablecoin as so-called “face-amount certificates,” using blockchain technology. If approved, it will be available to both U.S. retail and institutional investors.

Founded in 2018 by serial tech entrepreneur Mike Cagney, San Francisco-based Figure specializes in mortgage financing and bridge loans. Its last known valuation, as of May 2021, was $3.3 billion.

About the Author

John Kimelman is a veteran journalist who has worked at Barron’s and CNBC covering such topics as investing and commercial banking. Mr. Kimelman has received compensation from Forge Global, Inc. for authoring this article. Read more from John.

Please Read These Important Legal Notices & Disclosures

The information and material presented in this article is provided for your informational purposes only and does not constitute an offer by Forge Global, Inc., Forge Securities LLC or any of its affiliates (collectively, "Forge") to sell, or a solicitation of an offer to buy any securities and may not be used or relied upon in connection with any offer or sale of securities. An offer or solicitation can be made only through the delivery of final offering document(s) and purchase agreement and will be subject to the terms and conditions and risks delivered in such documents.

To the extent information about or defining specific terms is provided herein, Forge makes no representations as to its accuracy and has no duty to update such information. Such information is based on Forge’s experience and the meanings and connotations of terms as Forge typically uses and interprets them. Others may construe such terms differently, and you should do your own research and consult with financial, legal and tax professionals regarding any such concepts included herein.

This article does not constitute an offer to provide investment advice or service. Registered representatives of Forge Securities LLC do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services. Securities referenced in this article may be offered by Forge Securities LLC, member FINRA/SIPC.

Forge Securities LLC is a wholly owned subsidiary of Forge Global, Inc. Certain affiliates may act as principals in such transactions. Forge Data LLC is an affiliate of Forge Global, Inc. and Forge Securities LLC.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice. Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment. Past performance Is not indicative of future results.