Are you curious about the most highly anticipated IPOs to watch in 2023? It has certainly been a long time since the IPO market got some love, especially after witnessing the high-profile IPOs of companies like Airbnb, Palantir, and Robinhood. These companies, which saw major investor attention in 2020 and 2021, have had their fair share of critics and have become emblematic of a new era of tech-driven growth.
Despite slowdowns in U.S. deal flow, the IPO market has shown remarkable resilience, raising $10.1 billion in the first half of 2023, according to EY. This represents a staggering 115% increase year-over-year, suggesting that an economic rebound is on the horizon and that the market is ripe for new entrants. With the economy showing signs of recovery and innovation continuing to drive interest in emerging companies, now could be a great time to start considering IPOs that will be household names in the next decade. The landscape is shifting, and the next wave of market leaders is poised to emerge.
Below are my top three highly anticipated IPOs to watch for 2023, each offering a unique opportunity to invest in the future of industry and technology!
Stripe is an Irish-American payment processing company founded by two brothers, Patrick and John Collison.
Starting from humble beginnings, Stripe launched out of Y-Combinator’s S09 Batch. They teased at an IPO back in July 2021, but global economic headwinds led them to take a step back.
The two brothers Patrick and John Collison reiterated that the company will decide on an IPO within the next year. In a letter to its shareholders, Stripe said that it had processed $817 billion in transactions in 2022.
This is up 26% year-over-year, with customer counts up 19% respectively. Stripe has become a payment processing giant, and while growth has slowed in 2023 the company remains optimistic. On Wednesday, March 15th, 2023, Stripe announced they had raised $6.5 billion USD at a $50 billion valuation.
This is down from its once $95 billion USD valuation in early 2021. When Stripe decides to IPO, it will likely be one of the largest IPOs in history. Investors should buckle up because Stripe is at the top of the list for the best IPOs to watch for 2023!
Reddit is a social media news aggregation, rating, and discussion website. The company was co-founded by Steve Huffman and Alexis Ohanian.
After gaining major popularity during the 2021 Gamestop SAGA and meme stock craze, the company set its sights on an IPO. But their plans quickly changed as the Russian/Ukraine war unraveled and the economy battled with high inflation.
In late 2021, Reddit was valued at approximately $15 billion USD in the private markets. After a broader range of deep technology valuation cuts, Fidelity estimates a $5.5-$6 billion valuation for Reddit (June 2023). This is certainly well below the company’s anticipated IPO range debut, having investors questioning its future plans.
The company is going through serious restructuring, and its CEO Steve Kaufman must find a way to compensate its moderators. Moderators of subreddits are the lifeline of the company and help drive its more than 55 million daily active users (DAUs). Its business model and lack of compensation for the moderators that drive the company’s growth has been an ongoing issue. While the future remains unclear, the company still plans to IPO sometime in the second half of 2023.
Instacart is an American grocery delivery company that operates in the United States and Canada. The company allows its users to order groceries on its app and have it delivered straight to their door. It also provides a unique way for its personal shoppers to earn an income, similar to Uber.
There has been a lot of buzz around the Instacart IPO, after the company filed with the Securities and Exchange Commission (SEC) in May 2021 to go public. However, plans suddenly changed due to ongoing macroeconomic conditions and an impending leadership shakeup. Once valued at $39 billion in 2021, the company has seen a steep valuation cut in the private markets.
Recent reports suggest that Instacart is valued at approximately $18 billion (March 2023). While the technology sector faces the brunt of higher interest rates, Instacart’s new CEO Fidji Simo is spearheading growth. She is no stranger to the technology world, having held multiple leadership positions at Facebook and is currently on the board of Shopify.
Instacart’s full-year revenue in 2022 jumped to $2.5 billion, up 39% year-over-year. The company recorded adjusted EBITDA of more than $100 million, according to a report from The Wall Street Journal. Instacart is currently thriving and this company is one of the best IPOs to watch for 2023.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.