Startup Trends: 3 private companies are latest to plan for IPO
While a lot of investor and media focus has been on the AI industry and its continued growth and funding, the trend could also signal a positive outlook for IPOs. According to Forge’s November Private Market Update, China based autonomous driving technology company WeRide went public in the U.S. at a valuation of over $4 billion in October. And another Chinese autonomous driving company, Pony AI also filed in the U.S. last month. These developments came at the same time San Francisco-based Omada Health reportedly filed for an IPO confidentially.
In recent weeks, both ServiceTitan, which provides software to home-related contractors, and Klarna, a Swedish buy-now, pay-later fintech firm, have announced plans to go public. And on November 13, 2024, CoreWeave, a cloud infrastructure company, announced a secondary share sale of $650 million, a demonstration of interest among a handful of Wall Street firms seeking to take positions in fast-growing tech startups before they go public. According to Reuters, CoreWeave is viewed as a candidate for an IPO next year though the company hasn’t filed paperwork yet.
ServiceTitan, a Business Management Software Company
Founded in 2012, Glendale, Calif.-based ServiceTitan provides software that helps home-related professionals such as plumbers and roofers manage their businesses. On Nov. 18, 2004, the company announced that it had filed with the Securities and Exchange Commission to go public, though the number of shares being offered and the price range of those shares have yet to be determined. The company plans to list its Class A common stock on the Nasdaq exchange using the ticker symbol “TTAN.”
According to Reuters, the company reported a 24% revenue increase for the quarter ending July 31, 2024, effectively narrowing its loss from the period the prior year.
ServiceTitan’s Forge Price™ as of Nov. 18, 2024 was $84.75 a share, giving the company an implied valuation of $7.6 billion, a number in line with the company’s post-money valuation based on a Series H-1 funding round in April 2024. Among its main investors are Arena Holdings, Battery Ventures, Bessemer Venture Partners, Sequoia Capital, T. Rowe Price, and Tiger Global Management.
Klarna Confidentially Files for IPO
Founded in 2005, Klarna, a Stockholm, Sweden-based digital lending firm, announced on Nov. 12, 2024 that it had confidentially submitted a registration statement with the SEC tied to a proposed IPO. It’s yet to be determined how many shares will be offered or the price range of those shares. According to Reuters, Klarna’s IPO would represent the largest Swedish company to go public since Spotify's IPO in 2018. It’s also expected to be one of the largest IPOs in the coming year for any European country, Reuters added.
The company’s Forge Price™ as of Nov. 18, 2024 was $370 a share, giving the company an implied valuation of $11.73 billion, which is a 75% premium to the company’s latest post-money valuation based on its latest funding round. Among the company’s main investors are Sequoia Capital, Silver Lake, Dragoneer, and Visa.
CoreWeave Announces $650 Million Minority Investment
Founded in 2017, Roseland, N.J.-based CoreWeave provides enterprises and leading AI labs with cloud solutions for accelerated computing. On Nov. 13, 2024, the company announced that it had closed a minority investment of $650 million led by investors Jane Street, Magnetar, and Fidelity Management & Research Co., among other firms.
The news follows an October 2024 announcement that CoreWeave has closed a $650 million credit facility, led by JPMorgan Chase, Goldman Sachs, and Morgan Stanley.
On Nov. 5, 2024, Bloomberg reported that CoreWeave had picked these same investment banks to lead an IPO, according to sources.
The company’s Forge Price™ as of Nov. 18, 2024 was $1,000 a share, giving an implied valuation of $24.4 billion, which is a 6% premium over the company’s post-money valuation based on a Series C round in May 2024.
