2024 IPO Draft Class: Ranking the Top Prospects

Following the pattern of last year’s tumultuous market conditions, the 2024 IPO landscape presents a mix of familiar faces and emerging giants. 

Drawing from our experience with the 2023 IPO Draft Class, we delve into this year’s top prospects, evaluating their potential impact on the public market.

Fanatics

Returning from last year, Fanatics continues to dominate the licensed sports merchandise world. With a robust e-commerce platform and strategic acquisitions, it remains a top contender in the IPO space. 

The company’s venture into sports betting and trading cards cements its status as a multifaceted leader in sports-related business.

Key Considerations:

• Robust revenue growth and diversified business model.
• Dominant position in a niche market with high consumer engagement.

Stripe

Stripe, a consistent name in IPO speculations, continues to impress with its substantial growth in the digital payments sector. 

Despite the founders’ preference for private operations, market pressures and growth opportunities might nudge Stripe towards an IPO.

Key Considerations:

• Strong market presence in online payments, essential for e-commerce.
• Impressive revenue growth, signaling robust business health.

Cerebras Systems

A new entrant, Cerebras Systems stands out for its groundbreaking work in artificial intelligence and advanced computing. Its unique position in a rapidly growing industry makes it a fascinating IPO prospect.

Key Considerations:

• Innovative technology with significant potential in AI and machine learning.
• High growth potential in a tech-driven market.

Shein

Chinese fast-fashion giant Shein has revolutionized the fashion industry with its agile business model and global appeal. Its potential IPO could shake up the retail sector, offering a unique blend of technology and fashion.

Key Considerations:

• Massive global reach and appeal in the fast-fashion sector.
• Impressive use of data analytics to drive sales and customer engagement.

Klarna

Klarna, known for its ‘buy now, pay later’ service, has been a topic of IPO discussions for a while. Its influence in the fintech sector, especially in consumer finance, makes it a noteworthy IPO candidate.

Key Considerations:

• Innovative consumer finance solutions in a growing fintech space.
• Strong user base and brand recognition.

Reddit

The long-awaited Reddit IPO still holds a place in our draft. The platform’s unique position in social media, combined with its vast and engaged user base, makes it a compelling prospect for investors.

Key Considerations:

• Unique social media platform with a highly engaged community.
• Potential for monetization and growth in digital advertising.

Discord

Discord continues to expand beyond gaming into broader communication sectors. Its growing user base and increased time spent on the platform present exciting possibilities for post-IPO growth.

Key Considerations:

• Expanding user base beyond gaming into broader markets.
• High user engagement and potential for new revenue streams.

Conclusion

Like its predecessor, the 2024 IPO Draft Class reflects the dynamic nature of the market, showcasing a blend of tech-savvy disruptors and seasoned players. Each prospect offers unique opportunities and challenges, highlighting the diverse and evolving landscape of public offerings. 

As the market conditions continue to evolve, these companies are poised to make significant impacts when they choose to go public.