Trending Now :

Mortgage Rate Buydown What Does the Hot Inflation Report Mean for the Housing Market How Do You Build Wealth: Invest in Yourself Times Up for Programmed Money Biggest Financial Crimes: Countrywide Quantitative Tightening, Inflation, & More The Stock Market Is On Sale Investors Need to Netflix and Chill Credit Card Fixed-Interest Loans: Explained Are You Money Smart? Build Your Credit for Free Filing Your Taxes in 2022 Credit Cards that Offer 2% Cashback on All Purchases Navient Ordered to Cancel Student Loans U.S. Mortgage Interest Rates Soaring Two Big Banks Cut Overdraft Fees 2022 IPO DRAFT CLASS: Ranking the Top 10 Prospects Re-Drafting the 2021 IPO Draft All You Need to Know about Buy Now Pay Later companies Credit Card Sign-Up Bonus or SUB The Best Credit Card for the Middle-Class Make An All-cash Offer with No Cash Capitalism Always Ignores Politics All You Need to Know about the Financial crisis of 2007-2008 American Families Face Serious Rent Burden Savings Is An Expense You Can’t Build Generational Wealth If You Are Broke IT’S OFFICIAL: Robinhood is a Meme Stock All You Need to Know About Biden Mortgage Modifications & Payment Reductions Apple Card 2nd Year Anniversary: Should You Get It Now Wells Fargo to Pull Customers Personal Lines of Credit The Rise of Individual Investors The US Housing Market Is Booming. Is a Crash Ahead? Financial Literacy: How to Be Smart with Your Money Non-Fungible Token (NFT):EXPLAINED SKYROCKETED CEO PAY & LONG LINES AT FOOD BANKS Amazon Workers Want to Unionize Another Major City Piloted Universal Basic Income The New Bubble: SPACs SUBMIT YOUR PPP ROUND 2 APPLICATION BEFORE MARCH 31ST Robinhood-GameStop Hearing & Payment for Order Flow Guess Who’s Coming to Main Street Democratic Senators Say No to $15 Minimum Wage BEZOS OUT! President Biden Most Impressive Act Went Unnoticed: CFPB Biden $1.9 Trillion Stimulus Package 2021 IPO DRAFT CLASS: Ranking the Top 10 Prospects $25 Billion Emergency Rental Assistance NO, TESLA IS NOT WORTH MORE THAN TOYOTA, VOLKSWAGEN, HYUNDAI, GM, AND FORD PUT TOGETHER AMAZON TO HAND OUT ITS WORKERS $300 HOLIDAY BONUS Where Does the American Middle-class stand on Student Debt Relief? Joe Biden’s Economic Plan Explained 4 TYPES OF BAD CREDIT REPORTS AND HOW TO FIX THEM What Is the Proper Approach to Not Buy Too Much House? FISCAL STIMULUS PLANS STILL IN ACTION How to Pick Investments for Your 401(k) 10 Simple Ways to Manage Your Money Better All You Need to Know about Reverse Mortgage All You Need to Know about Wholesale Real Estate Credit card Teaser Rates AVERAGE CREDIT CARD INTEREST RATE SURGES TO 20.5 Percent Trump Signs 4 Executive Orders for Coronavirus Economic Relief The Worst American Economy in History WHY CREDIT CARDS MINIMUM PAYMENTS ARE SO LOW? 10 BIGGEST COMPANIES IN AMERICA AND WHO OWNS THEM White House Wants to End the Extra $600-A-Week Unemployment  10 Countries That Penalize Savers FEWER CREDIT CARD BALANCE-TRANSFER OFFERS ARE IN YOUR MAILBOX Private Payrolls and the Unemployment Rate SHOULD YOU BUY INTO THE HOUSING MARKET RESILIENCY? WILL WE GET A SECOND STIMULUS CHECK The Child Tax Credit and Earned Income Tax Credit THE RETURN OF BUSINESS CYCLES Should You Request a Participant Loan or an Early 401(k) Withdrawal? Homebuyers Should Not Worry about Strict Mortgage Borrowing Standards The Potential Unintended Consequences of Mortgage Forbearance All Business Owners Need to Know about the Paycheck Protection Program 10 MILLION UNEMPLOYMENT CLAIMS IN TWO WEEKS HOW WILL THE GLOBAL MIDDLE-CLASS RECOVER FROM A SECOND ECONOMIC RECESSION IN A DECADE? WILL U.S. CONSUMERS CONTINUE TO SPEND? HOW’S YOUR 401(k) PRESIDENT TRUMP SIGNS $2.2 TRILLION CORONAVIRUS STIMULUS BILL MIDDLE-CLASS NIGHTMARE: MORE THAN 3.3 AMERICAN FILED FOR UNEMPLOYMENT CLAIMS IN THE US LAST WEEK. LAWMAKERS AGREED ON $2 TRILLION CORONAVIRUS STIMULUS DEAL CORONAVIRUS STIMULUS PACKAGE FAILED AGAIN IN THE SENATE APRIL 15 (TAX DAY) DELAYED DEMOCRATS AND REPUBLICANS DIFFER ON HOW $2 TRILLION OF YOUR TAX MONEY SHOULD BE SPENT YOU CAN DELAY MORTGAGE PAYMENTS UP TO 1 YEAR, BUT SHOULD YOU? 110 Million American Consumers Could See Their Credit Scores Change The Middle-Class Needs to Support Elizabeth Warren’s Bankruptcy Plan The SECURE Act & Stretch IRA: 5 Key Retirement Changes 5 Best Blue-chip Dividend Stocks for 2020 9 Common Bankruptcy Myths 401(K) BLUNDERS TO AVOID Government Policies Built and Destroyed America’s Middle-Class & JCPenney Elijah E. Cummings, Esteemed Democrat Who Led the Impeachment Inquiry into Trump, Dies at 68 12 Candidates One-stage: Who Championed Middle-Class Policies the Most WeWork: From Roadshow to Bankruptcy Stand with the United Auto Workers Formal impeachment Inquiry into President Donald Trump America Is Still a Middle-Class Country SAUDI OIL ATTACKS: All YOU NEED TO KNOW THE FEDERAL RESERVE ABOLISHED BUSINESS CYCLES AUTO WORKERS GO ON STRIKE Saudi Attacks Send Oil Prices Spiraling REMEMBERING 9/11 What to Expect from the 116th Congress after Their August Recess Should You Accept the Pain of Trump’s Trade War? 45th G7 Summit-President Macron Leads Summit No More Upper-Class Tax Cuts Mr. President! APPLE CARD IS HERE-SHOULD YOU APPLY? THE GIG ECONOMY CREATES A PERMANENT UNDERCLASS 5 REASONS IT’S SO HARD FOR LOW-INCOME INDIVIDUALS TO MOVE UP TO THE MIDDLE CLASS ARE YOU PART OF THE MIDDLE CLASS? USE THIS CALCULATOR TO FIND OUT? WELLS FARGO IS A DANGER TO THE MIDDLE CLASS The Financialization of Everything Is Killing the Middle Class
2023 IPO Draft Class
Stock News

2023 IPO Draft Class:Ranking the Top Prospects

The estimated reading time for this post is 301 seconds

 The dismal performance of blockbuster IPOs such as electric car maker, Rivian, the trading platform Robinhood, and others forced many top anticipated 2022 IPOs to sit on the sideline and wait for economic conditions to improve. So, TPG Partners Inc was the only company from our 2022 IPO Draft Class that went public last year. 

Billion-dollar unicorns that raised beaucoup money during the easy money era probably can’t wait for the 2022 beaten-down stock market and other unfavorable market conditions to improve. Going public might not be entirely up to those companies’ executives.

Private Investors and other circumstances might force Stripe, Reddit, and other companies from FMC’s last year’s Most Anticipated IPO list to enter the public offerings market in 2023. 

One of those circumstances is valuation. Many of those companies had down rounds last year, meaning they raised private funds at a lower valuation than the previous year. For example, Stripe Inc raised private funds at a $74 billion valuation which is $20 billion lower than its last round of structured financings. As a result, financialmiddleclass.com‘s 2023 IPO Draft Class has many of last year’s companies and some newcomers.

2023 IPO DRAFT CLASS: Ranking the Top Prospects

The public offerings market collapsed last year. One hundred eighty-one companies went public compared to 1035 in 2021. It was an 82.5% drop. 

It was a gloomy year for the stock markets and the financial markets. The S&P 500 fell 19.4, its most significant calendar-year decline since a 38% drop in 2008.  

Both the Nasdaq Composite and the Dow suffered historical declines. They fell 33%  and 9%, respectively. Both speculative and safe assets rattled last year. Bitcoin lost over 60% of its value, and fixed-income also yielded negative returns.

2023 IPO DRAFT CLASS: Fanatics

Fanatics is a global leader in licensed sports merchandise with a diversified business model, including licensed sportswear, sports collectibles, sports merchandise, sports betting, and much more.

The pending acquisition of BetParx sportsbook will give a solid footing in the sports betting business. Buying Mitchell & Ness allows the company to corner the authentic vintage jerseys market. Moreover, its subsidiary Topps provides the company with a legal monopoly in the trading cards business. 

Private investors have a healthy appetite for global e-commerce in sports merchandise. It has already raised nearly $5 billion in venture capital funding. It raised $700 million at a $31 billion valuation last year.

Key Operational Metrics  

  1. Founded in 1995
  2. 10,000+ employees
  3. 900+ partnerships of the sports world’s most prominent brands
  4. Operates its website and 300+ team and league e-commerce websites 
  5. $3.5bin revenue in 2021
  6. Academy Sports+ Outdoors, Dick’s Sporting Goods, and Big 5 Sporting Goods are among its competitors.

2023 IPO DRAFT CLASS: Reddit Inc

The 17-year-old popular social media platform was one of the companies we were sure would go public last year. The company filed a confidential S-1 with the Securities and Exchange Commission (SEC), announcing its plan to go public in December 2021.  

Reddit did not access the private market last year; its previous funding round was on august 12, 2021, at a more than $10 billion valuation.   

Key Operational Metrics  

  1. Founded in 2005
  2.  52 million daily users as of the last funding round
  3.  3.5+ million subreddits 
  4. ~700 employees as of February 2021
  5. $350 million in revenue in 2021
  6. Twitter Inc & Facebook are among its major competitors.

Stripe

Stripe’s co-founder, John Collinson, said, “they were very happy staying private.” 

Because they had already raised $2.2 billion over 20 rounds in the private market when we published our list last year, we believed that early investors would start getting antsy. The payments processor did not raise any money last year.

Key Operational Metrics  

  1. Founded in 2009
  2. Processes billions of dollars in transactions
  3. Charges 2.9% of total transaction value
  4. ~4k employees
  5. 14 global offices
  6. $12 Billion in revenue in 2021, nearly $5 billion more than in 2020
  7. PayPal & Square are among its major competitors,

2023 IPO DRAFT CLASS: Instacart

The grocery delivery company was on our inaugural list two years ago. It did not go public in 2021 because it had easy access to private funding. So far, it has raised $2.9 billion at a $39 billion valuation.  

However, people who have access to inside information on the company said that Instacart cut its internal valuation to around $10 billion, nearly 75% less than its last round of funding valuation.

Key Operational Metrics 

  1. Founded in 2012
  2. 600+ retail partners in North America
  3. Provides delivery and pickup services from 45,000+ stores
  4. 5,500+ cities in U.S. & Canada
  5. $1.8 billion in revenue in 2021 is about $115M more than the previous year.

2023 IPO DRAFT CLASS: Chime

The jury is still out on whether or not financial technology or fintech can unseat brick-and-mortar banks. Like many other firms on this list, the financial technology company did not raise any private funding last year. 

It last raised $750M on August 13, 2021, at a $25 billion valuation, bringing its total funding amount to $2.3 billion.

Key Operational Metrics 

  1. Founded in 2013
  2. Fee-free checking and savings accounts
  3. 60,000 ATMs for free
  4. 13+ million active customers
  5. $1B million in revenue in 2021, a 58% increase from the previous year.

2023 IPO DRAFT CLASS: Discord

The voice and text chat App, which is highly popular with gamers, is gaining popularity amongst non-games due to the ongoing at Twitter since Elon Musk acquired it.  

Discord’s active users increased from 150 millions to 350 millions, and those users are spending at least 280 minutes on the platform every month.

In 2022, The group-chatting App was one of the bright spots in venture capital funding. It raised $500 million at a $15 billion valuation which is more than double its previous one when it last accessed venture capital funding.

Key Operational Metrics

  1. Founded in 2015
  2. 650+ employees
  3. 150M+ monthly active users (MAUs)
  4. 350+ million registered accounts
  5. $200+ million revenue in 2021

2023 IPO DRAFT CLASS: Databricks

The enterprise software company offers big firms an open, unified data and artificial intelligence (AI) platform.  

More retailers are finding value in partnering with the firm whose proprietary technologies allow them to access updated point-of-sale, improve forecasting, and manage inventory effectively and efficiently.

On August 31, 2021, the data lake company raised $1.6 billion at a $38 billion valuation bringing its total venture capital funding to $3.5b over nine rounds.

Key Operational Metrics

  1. Founded in 2013
  2. 4,000+ employees
  3. 7,000+ organizations use its data lakehouse software
  4. $405+ million in revenue in 2021
  5. Google, Microsoft & Snowflakes are among its competitors.

BACK TO TOP
Author

Senior Accounting & Finance Professional|Lifehacker|Amateur Oenophile

Continue Reading
1 Comment

1 Comment

  1. Pingback: 2023 US Stock Market Outlook - Stock News

Leave Comment

Advertisement
Personal Finance / Feb 05, 2023

Auto Loans

The estimated reading time for this post is 136 seconds Auto loans are a popular...

Real Estate / Feb 01, 2023

Mortgage Rate Buydown

The estimated reading time for this post is 193 seconds A mortgage rate buydown is...

American Middle Class / Jan 29, 2023

We Should Teach Financial Literacy to All Americans?

The estimated reading time for this post is 621 seconds Financial literacy is understanding and...