The anticipated wave of tech IPOs in 2024 has faced substantial obstacles, dampening the earlier optimism for a thriving IPO pipeline. While four notable ventures went public, including Reddit, Astera Labs, Ibotta, and Rubrik in the first two months, experts suggest that the macro conditions, such as the upcoming presidential election and elevated interest rates, will delay the full reopening of the IPO market until 2025.
Despite the challenges, there is still hope for a better IPO landscape compared to the previous year. Companies like Klarna and Shein are engaging with bankers, suggesting potential filings in the near future. However, the exact timelines for their IPOs remain uncertain.
Interestingly, the focus seems to have shifted towards identifying the companies that are not planning an IPO this year. Some CEOs of late-stage startups have already made it clear that they won’t be going public in 2024, while others have taken financial actions indicating their reluctance for an immediate public listing.
The changing dynamics of the tech IPO market in 2024 raise questions about the strategies and considerations of companies aiming to go public in the midst of economic volatility. As investors eagerly await the potential entries of Klarna, Shein, and others, the unpredictable nature of the IPO landscape continues to keep the market on its toes.