Startup Trends: Companies moving toward 2025 IPOs

The IPO market for the year continued to show positive signs in Q3, with 37 IPOs raising a total of $8.0 billion, according to research publication Renaissance Capital.

During Q3, several high-profile firms announced or were reported to be planning 2025 IPOs. The public offering market is now looking ahead to 2025, as a number of prominent companies have announced potential offerings for next year.

Here are five unicorns that have indicated they are potentially nearing public offerings.

Cerebras, a manufacturer of chips for AI

Cerebras, a chipmaker and AI platform company, filed an S-1 registration statement with the SEC at the end of September 2024.

According to the filing, Cerebras will trade on the Nasdaq under the ticker symbol "CBRS." Citigroup and Barclays are the lead underwriters, along with UBS, Wells Fargo, TD Cowen, Needham & Company, Craig-Hallum, Wedbush Securities, Rosenblatt, and Academy Securities.

Still, Cerebras may postpone the IPO due to delays with a national security review related to United Arab Emirates-based G42’s minority investment in the company, Reuters reported on October 8, citing people familiar with the matter. The company will move forward with the IPO when it receives clearance, the article said.

Founded in 2016, Sunnyvale, California-based Cerebras competes directly with NVIDIA. With its flagship product, the third-generation wafer-scale engine, or WSF-3, Cerebras has created the world's largest computer chip. The company's CS-3 system, powered by its flagship chip, can be used by other companies to run AI workloads.

Cerebras’ Forge Price™ is $40.08 as of November 5, 2024, giving it a valuation of $7.76 billion, a 173.4% premium to its last funding round in September 2024.

Chime, a consumer fintech firm

Chime, an online bank, has chosen Morgan Stanley to lead its planned IPO, according to a Bloomberg report from late September. The company is looking to 2025 for its public offering. Chime, founded in 2013 and based in San Francisco, offers debit cards, spending accounts, and an optional savings account, all through a mobile banking app. The company’s “pro-consumer” approach to banking includes SpotMe, a fee-free overdraft feature, and MyPay, which allows members to access up to $500 of their salary before payday.

In June, Chime announced that it had acquired Salt Labs, a provider of employee rewards and incentive platforms that function as savings accounts for hourly workers.

Chime’s Forge Price™ is $24.75 as of November 5, 2024. That valuation of $8.93 billion is a 64.2% discount to the company’s last funding round in August 2021.

Klarna, a payment fintech

Klarna, an innovator in the “Buy Now, Pay Later” (BNPL) industry, is close to picking Goldman Sachs for its planned 2025 IPO, Bloomberg reported in August.

Klarna lets consumers purchase goods by splitting the cost into four interest-free payments. The company counts 85 million active consumers and 575,000 merchants using its services according to the private company’s website.

In October, the company introduced Apple from Klarna, a storefront in the Klarna app and website where consumers can buy Apple products using flexible payment options. Other retail partners added in the past year include Uber, Stitchfix, Stubhub, New Balance, and Electronic Arts.

Stockholm, Sweden-based Klarna, founded in 2005, is backed by investors such as Sequoia Capital, Silver Lake, Bestseller Group, Dragoneer, Permira, Visa, Ant Group, and Atomico.

Klarna’s Forge Price™ of $370 as of November 5, 2024, gives it a valuation of $14.6 billion, a 75.1% premium to its last funding round.

MNTN, an advertising technology firm

MNTN, a developer of software for the advertising industry, chose Morgan Stanley for a 2025 IPO, Bloomberg reported in late September.

MNTN’s software helps firms measure metrics including conversions, revenue, and site visits generated by television advertising. The company’s MNTN Performance TV allows advertisers to tie their performance directly to television campaigns.

Actor Ryan Reynolds became Austin, Texas-based MNTN’s chief creative officer after the company purchased his Maximum Effort agency in 2021. The company’s investors include BlackRock, Fidelity, SV Angel, and Qualcomm Ventures.

MNTN’s Forge Price™ is $22.97 as of its last funding round in February 2022, giving it a $2.21 billion valuation.

Hinge Health, a healthcare startup

Physical therapy technology firm Hinge Health hired banks led by Morgan Stanley for a 2025 IPO, Business Insider reported in September. Other banks working on the IPO are Barclays and Bank of America, according to the publication.

Hinge Health allows consumers to complete physical therapy remotely, using sensors and mobile devices. According to Hinge, participants report reduced pain and less desire to pursue surgery after doing the virtual therapy sessions. The company’s Enso is an FDA-cleared device that can be applied to multiple body parts to treat mild to moderate musculoskeletal pain.

The San Francisco-based company was founded in 2014 and has treated 1 million members to date.

Hinge's Forge Price™ is $31 as of November 5, 2024, giving it a valuation of $2.48 billion, a 60% discount to its last funding round in October 2021.