Initial public offerings (IPOs) in the latter half of 2020 included a few highly anticipated big names. While COVID-19 has affected both the economy and venture capital, Quarter 3 (Q3) 2020 witnessed an increase in venture capital exits compared to the first part of the year.
Exit value reached $103.9 billion in Q3, according to Pitchbook’s Venture Monitor data, and the public debut of companies such as Asana, Palantir, and Snowflake contributed to this total value. The fourth quarter of 2020 also included Airbnb and DoorDash IPOs.
Anticipated IPOs for 2021
With an exciting end to 2020, it’s time to look forward to what 2021 might bring. Below are a handful of companies that could go public in the next year or so.
(MicroVentures’ portfolio companies are noted with an asterisk in the list below.)
Last Round: $500M (September 2020)
Estimated Valuation: $5–10B
Affirm provides financial technology services that offer short-term loans to consumers at the point of sale, allowing approved consumers to pay for goods in installments. The company recently filed an S-1, and it reported $509.5 million net revenue for its fiscal year that ended on June 30, 2020.
Industry: Localized social networking app
Last Round: $170M (September 2019)
Estimated Valuation: $2.2B
Nextdoor provides a social media platform that connects people based on location rather than pre-existing relationships or similar interests. Participants in neighborhood groupings can share news, buy and sell or trade items, provide local business recommendations, look for lost pets, and more. The company is reportedly looking at a valuation of $4 billion to $5 billion when it goes public.
Industry: Financial technology/investing app
Last Round: $660M (September 2020)
Estimated Valuation: $11.7B
Robinhood offers an app-based investment platform for users to buy and sell stocks, ETFs, options, and cryptocurrency at zero commission. The company is often credited with helping popularize investing among millennials, and it has done well with venture capital investors this year.
Industry: Personal fintech
Last Round: Unknown (September 2019)
Estimated Valuation: $4.8B
SoFi provides a range of personal finance and loan services, although it is likely best known for its student loan refinancing services. The company is reportedly in talks with SPACs as a potential route to go public.
Last Round: Unknown (November 2020)
Estimated Valuation: $46B (as of August 2020)
SpaceX is pushing the limits of space exploration and potential. Although rumors float about a coming IPO, Elon Musk indicated in an interview this last year that an IPO for the Starlink portion of SpaceX might come at some point in the next few years. Morgan Stanley has recently given a long-term valuation estimate for SpaceX of $100 billion if it continues its projected growth.
Industry: Software-as-a-service fintech
Last Round: Unknown (May 2020)
Estimated Valuation: $36B
Stripe helps companies facilitate web and mobile payments. The fintech company’s cloud payment API is used by customers such as Amazon, Google, Salesforce, and Shopify. According to TechCrunch, the $36 billion valuation for Stripe comes from being “the cloud payment API of choice.”
Industry: Robotic process automation
Last Round: $225M (July 2020)
Estimated Valuation: $10.2B (July 2020)
UiPath develops robotic process automation and artificial intelligence software. In July 2020, the company reported annual recurring revenues of $400 million. UiPath landed on the CNBC Disruptor 50 list in 2020.
If you’re new to terms like “SPAC” and “IPO,” check out a few of our previous blog posts covering different ways to go public:
- What’s the Difference Between an IPO and a Direct Listing?
- SPAC Explained: What is a Special Purpose Acquisition Company?
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The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.