10 Upcoming US IPOs To Watch Out In 2021 - Kalkine Media

May 11, 2021 08:05 AM PDT | By Team Kalkine Media
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Sumamry

  • The San Francisco based Nextdoor, a social media company that runs an eponymous social networking site, is expected to go public in 2021.
  • Founded in 2014, digital mortgage lender Better.com plans an IPO this year.
  • Instacart’s market valuation doubled to US$39 billion in less than six months after it received US$265 million in investments.


The year 2020 proved to be a huge success for the US IPO market as 494 initial public offerings combined raised more than US$174 billion.

Despite the pandemic, companies like Airbnb, DoorDash, and Snowflakes went public last year, raising the confidence of others to go public.

The following are 10 US companies that may be worth exploring in 2021.

Nextdoor

The San Francisco based Nextdoor, a social media company that runs an eponymous social networking site, is expected to go public in 2021. The company raised US$455 million from 24 investors through nine rounds of fundraising.

Nextdoor was valued at US$2.2 billion after the latest round. It has acquired three companies: Neighborland, Trove, and Hoodline.

Founded in 2008, with a presence in 11 countries, the company aims to increase its valuation to US$5-6 billion. Currently, one in every four Americans uses the app. Nextdoor saw its number of subscribers soar by 80% during the pandemic.



Pic Credit: Pixabay. 

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Better.com

Founded in 2014, digital mortgage lender Better.com is expected to go public in 2021. The company provides loans and refinancing facilities to new home buyers. Bank of America and Morgan Stanley to advise the company on the IPO. 

After the SoftBank Group invested US$500 million in the company last month, the company’s value has gone up to US$6 billion from US$4 billion.

The company has raised over US$1 billion since its inception. The IPO speculations started after SoftBank’s investment in the company.

Its other backers include Goldman Sachs, and American Express, among others. The company has over 3000 employees.

 

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Pic Credit: Pixabay.

 

Robinhood Markets Inc

Robinhood Inc is a trading app launched in 2013. It has registered for IPO in March 2021 and is expected to go public in the second quarter of 2021. The number of shares and their price are yet to be disclosed.

The company raised US$660 million through a Series G round of funding in September 2020, which rose its value to US$11.7 billion. It also had raised US$3.4 billion in another investment round which attracted investors like NEA, Index Ventures, and ICONIQ Capital.

The company offers commission-free trading on stocks, which increased its popularity among youth. The company has over 20 million users as of now.

 

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Databricks

Databricks, an artificial intelligence and data engineering company launched in 2013, is expected to go public in 2021. The stocks to be sold through investment banks or brokers.  

The company has raised US$1.9 billion from 28 major investors through seven big rounds of funding since its inception. Its clients are mainly Fortune 500 companies, which rely on Databricks’ data engineering, machine learning, and analytics. Many top venture capitalists have already invested in the company.

Pic Credit: Pixabay.

 

Stripe

Payment processing startup Stripe may go public in 2021. The financial services company might be one of the biggest success stories when it goes public.

Stripe’s value soared 164% to US$95 billion from last year’s valuation of US$36 billion after a series of H funding rounds, making it the most valuable startup. Its backers included Fidelity and Axa.  It will be one of the major IPOs in the US this year, based on its valuation.

 

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Instacart

Grocery delivery startup Instacart may opt for a direct US listing this year. Founded in 2012, the San Francisco based startup saw six-fold growth in doorstep delivery due to the pandemic last year. It also doubled its workforce to 500,000 this year.

Instacart’s market valuation doubled to US$39 billion in less than six months after it received US$265 million from investors like T Rowe Price Associates Inc. and D1 Capital Partners. The company is also mulling over its international expansions.

Instacart has hired Goldman Sach Inc. to help in the listing.

 

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SoFi

Finetech firm Social Finance, also known as SoFI, is expected to go public via SPAC (special purpose acquisition company). Chamath Palihapitiya, the venture capitalist and back-check firm, is at the helm of this SPAC. After the merger, SoFi is expected to be valued at US$8.65 billion.

The IPO plan comes amid a record number of young traders entering the stock market. The craze is likely to continue. The company offers loan, saving account opening services, stock market-related services. It also allows retail investors to buy IPOs from other companies. 

 

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GitLab

Cloud-based software startup GitLab plans to go public this year. Founded in 2011, the company raised over US$400 million through nine rounds of funding, which took its valuation to US$6 billion. Its major investors are Goldman Sachs and Light Street Capital, among others.

The company’s earnings increased in the latest quarter, and it has also secured new clients, including three airline companies.

Earlier, the company had plans to go public in November 2020 but could not do it due to the pandemic. 

 

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Pic Credit: Pixabay. 

Rivian Automotive

Electric vehicle startup Rivian is expected to go public in the third quarter of 2021. After the IPO, its valuation may go up to US$50 billion from US$27.6 billion now.

Founded in 2009, the Michigan-based company manufactures electric trucks and SUVs. It raised US$2.7 billion in a private equity round in 2020. It is the biggest investment in the EV market so far. Its investors include Amazon and Ford Motors. The company has over 3600 employees.

The start-up is also planning to develop charging stations for its customers.

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ThoughtSpot

ThoughtSpot is a data visualisation service provider founded in 2012. It may go public this year. The company had originally planned for the IPO in 2020, but it got delayed due to the pandemic.

The company saw 108% growth in 2019 and 88% in the previous year.

ThoughtSpot had raised US$743.7 million from eight rounds of funding.

Snowflakes has invested US$20 million in the company. 

Recently, the company has partnered with business analytics solution firm InfoCepts. 

 

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