For the past few years, it has been rare to see a big private unicorn jump headfirst into the public market.
After all, a variety of headwinds barred companies from making a successful debut: The market was volatile, interest rates were high, and there was plentiful private funding to keep private companies afloat.
But a lot of that has changed over the past few months. With the S&P 500 regularly reaching new heights and the Fed poised to cut interest rates in September, public markets look more enticing than ever to private companies.
Klarna, the buy now, pay later platform, is kicking off a string of IPOs this week, seeking a $14 billion valuation. The platform originally prepared to go public all the way back in 2021, when its private market valuation reached $46 billion, but the firm stayed private when fintech enthusiasm began to falter.
A slew of other big names are set to follow in Klarna’s footsteps this week, including the Winklevoss twins-backed crypto company Gemini Space Station, engineering company Legence, crypto firm Figure, transit software company Via Transportation, and Black Rock Coffee.
In addition, StubHub announced in a filing today that it is looking to raise $851 million in its forthcoming IPO, which would imply a valuation of up to $9.2 billion. The ticketing platform had previously halted its IPO process back in April after that fateful Liberation Day, but is now back on track.
Are IPOs really back?
Plenty of high-profile IPOs this year have motivated others, especially in the tech, AI, and crypto sectors, to jump in while the water is warm. Companies like Circle, CoreWeave, and Hinge Health have all enjoyed strong returns since their public debuts.
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But it isn’t all sunny skies ahead: Last week’s labor market data sent shivers down economists’ spines. Meanwhile, President Trump’s ongoing tariff legal battle, as well as the White House’s assault on the Fed’s independence, could cause the market to do an impromptu U-turn.
And even when firms do go public, they have a new high bar to clear. Just look at design platform Figma, which dropped 20% after its first earnings report as a publicly traded firm failed to woo the same investors who sent its stock popping 250% when it first went public.
If there’s one thing the market keeps reminding IPO hopefuls, it’s that getting to the top is easier than staying there.—LB