New kids on the block

A new squad of tech companies is joining the public markets club—and being welcomed by investors with a champagne toast.

Fintech Chime Financial raised about $864 million ahead of its debut on the Nasdaq today. It opened at $42 per share, far above expectations, giving it a valuation of $14.5 billion. Shares closed at $37.

While that valuation may sound impressive, it’s still a steep cut from the $25 billion Chime was valued at in its last funding round in 2021, when venture capitalists were throwing money at just about everything.

But Chime couldn’t have picked a better time for its IPO. AI hardware company CoreWeave is up roughly 271% since it debuted in March. Shares of stablecoin issuer Circle have nearly quadrupled since it went public last week, while space company Voyager Technologies popped 82% in its first day of trading on Wednesday.

Chime is able to offer payment services by partnering up with actual banks like Strike Bank and Bancorp Bank, given it doesn’t actually have a bank charter itself.

The IPO pipeline is flowing

The past few years have not been easy for tech unicorns looking to IPO. High interest rates and a rocky public market environment left hopefuls waiting on the sidelines. Many were hoping that this year would be the one the pipeline finally re-opened, with President Trump promising lighter regulations. But April’s Liberation Day tariff chaos threw a wrench in that plan, prompting some companies like Klarna to delay their IPOs. Now, however, the good vibes are back.

Should your portfolio chime in? That Chime is currently worth less than its valuation in a VC round in 2021 could be a sign that investors are getting a bargain in its IPO—or more evidence of a fintech bubble during the Covid years. The company’s revenue, which mostly comes from interchange fees, jumped 32% last quarter year over year, and it posted $25 million in adjusted profit in Q1. —LB