{"id":59841,"date":"2025-08-05T09:28:12","date_gmt":"2025-08-05T09:28:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/59841\/"},"modified":"2025-08-05T09:28:12","modified_gmt":"2025-08-05T09:28:12","slug":"after-figmas-red-hot-ipo-investors-say-these-companies-may-be-next-to-ipo","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/59841\/","title":{"rendered":"After Figma\u2019s red hot IPO, investors say these companies may be next to IPO"},"content":{"rendered":"

Figma\u2019s sensational IPO<\/a> last week resurrected longstanding debates about IPO pricing and first day pops\u2014an unsurprising reaction to the newly listed stock\u2019s 333% surge in its first days of trading. As investors dissect the offering<\/a> (and as Figma\u2019s stock settles back a bit, falling 27% on Monday), other key questions have emerged: Will Figma\u2019s debut entice other startups to jump into the fray, bringing an end to the tech industry\u2019s IPO drought<\/a>? And if so, who\u2019s next?<\/p>\n

There\u2019s a long list of late-stage VC-backed tech companies with strong customer bases that Wall Street investment bankers would love to take public. Many of these multi-billion dollar companies, including Databricks, Klarna, Stripe<\/a>, and SpaceX<\/a>, have been subjects of IPO speculation for years. And then of course, there\u2019s the crop of richly valued AI startups, from OpenAI and Anthropic, to Elon Musk\u2019s xAI.\u00a0<\/p>\n

Those companies will likely continue to be in the spotlight, but in conversations I had with several investors following Figma\u2019s debut, other names came up as more likely to IPO sooner including Canva, Revolut, Midjourney, Motive, and Anduril.\u00a0<\/p>\n

\u201cHaving positive IPOs is a good signal for everybody,\u201d says Kirsten Green, founder and managing partner at Forerunner Ventures, whose portfolio company Chime recently went public and experienced a 37% pop in stock price<\/a> on its first day of trading. (Forerunner also has investments in public company Hims & Hers and late stage private companies including Oura.) \u201cI believe we should revisit this idea: an IPO is the Series A of being in the public market\u2013and having that really be a motivator to people\u2019s willingness, and maybe even eagerness to go public.\u201d\u00a0 (As if on cue, HeartFlow, a medical technology company, filed an S-1 for its IPO at a $1.3 billion valuation on August 1).<\/p>\n

Kyle Stanford, the director of research on US venture capital at PitchBook, notes that just 18 venture-backed companies have gone public through June 30 of this year. This, he says, is a factor of policy uncertainties that translate to funding headwinds as well as the overfunding that occurred in 2021 that continues to stymie venture capital. \u201cFigma hopefully starts to break the dam, but it\u2019s been a pretty slow quarter,\u201d he says.<\/p>\n

Though Figma, which makes design software, is profitable and has a strong set of integrated AI capabilities, these qualities are not essential to companies bound for IPO success, says Stanford. He says that investors would prefer companies to generate a minimum of $200 million in revenue that grows at high rates and prioritize positive free cash flow over profitability. Having an AI story is also \u201cvery important,\u201d unless the company is very high growth and profitable by wide margins.\u00a0<\/p>\n

Canva may be a most-compelling case since it\u2019s a design company with similar fundamentals to that of Figma, said multiple investors I interviewed. Design collaboration company Canva<\/a> has raised about $589 million over 18 rounds at a $32 billion valuation, higher than that of Figma\u2019s at the time of its IPO. \u201cCanva is a big winner when it comes to what happened yesterday with Figma,\u201d says Jason Shuman, an investor at Primary Ventures. Shuman, who is not an investor in Canva, points to Canva\u2019s $3 billion annual revenue and 35% year-over-year growth as signs of its business\u2019 durability.<\/p>\n

Others agree. \u201cCanva\u2014after looking at Figma, holy crap\u2014they\u2019re going to try to IPO as soon as possible,\u201d says Felix Wang, Managing Director and Partner at Hedgeye Risk Management, who is not a Canva investor.\u00a0 Canva, which was recently valued at $37 billion<\/a> during a share buy back, did not respond to Fortune\u2019s request for comment.<\/p>\n

Wang and others note that the surge in Figma\u2019s price is, in many ways, not actually driven by Figma. Rather, the market is at an all-time high, causing retail trader demand for companies new to market. \u201cThey don\u2019t even know this company, but they know it\u2019s a new company,\u201d says Wang of retail traders investing in Figma. \u201cThey\u2019re going to put some money into it, and then, more interestingly: they\u2019re going to show it off on social media.\u201d<\/p>\n

As Figma is to Canva; NuBank is to Revolut, reasons Primary\u2019s Shuman. He looks at fintech NuBank, which is up around 13% from its early 2025 IPO and thinks that Revolut, which has a very similar business model, could copycat. Revolut told Fortune in a statement: \u201cour focus is not on if or when we IPO, but on continuing to expand the business, building new products, and providing better and cheaper services to serve our growing global customer base.\u201d\u00a0<\/p>\n

Another potential IPO candidate in the near-future is chipmaker Cerebras, says Primary\u2019s Shuman, who invests in vertical AI, B2B, SMB and finance and defense companies but has no stake in Cerebras or Revolut. (Cerebras filed an S-1<\/a> in September 2024 but its IPO was delayed by regulators concerned about a $335 million investment by UAE-based G42. Now, it\u2019s been cleared by regulators for a public market listing, but the company has held off on an IPO as it fundraises $1 billion, reports<\/a> The Information.)<\/p>\n

Many companies, including the largest and hottest private company OpenAI (which just nabbed a $300 billion valuation<\/a>, per the New York Times), have significant incentives to remain private. This is because they can avoid public scrutiny that arises from disclosures required of public companies and have access to significant private capital for liquidity infusions that are often essential.\u00a0<\/p>\n

Yet, the fact that behemoths like OpenAI, Stripe ($91 billion valuation) and SpaceX ($400 billion valuation) are private may even be a hidden cost for the public market. \u201cI\u2019m going to get philosophical,\u201d says Forerunner\u2019s Green. \u201cPart of the public market was created so the broader population could participate in the economy and in the growth of the economy; it wasn\u2019t meant to sit in a few people\u2019s hands.\u201d<\/p>\n

One behemoth may be entering the stock market limelight. Anduril, the defense tech company <\/a>that nabbed a $30.5 billion valuation on its Series G, has incentives to remain private due to the nature of its business. But Pitchbook\u2019s Stanford predicts it to be the next tech IPO. In addition to Anduril\u2019s CEO announcing it will \u201cdefinitely\u201d become publicly traded, its value proposition is core to Trump Administration priorities in security and defense, which could make it a hot pick for investors, Stanford reasons.\u00a0<\/p>\n

\u201cOther than that,\u201d he says the list of potential IPO candidates these days is long: \u201cThere\u2019s probably about 300 other companies that it could be.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Figma\u2019s sensational IPO last week resurrected longstanding debates about IPO pricing and first day pops\u2014an unsurprising reaction to…\n","protected":false},"author":2,"featured_media":59842,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,39193,4759,1166,164],"class_list":["post-59841","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-figma","tag-ipos","tag-startups","tag-venture-capital"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/59841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=59841"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/59841\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/59842"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=59841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=59841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=59841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}