Market Volatility Spurs IPO Delays: Klarna, StubHub, and Others Hit Pause
In light of recent market volatility, several companies have opted to delay their initial public offerings (IPOs) to avoid unfavorable conditions influenced by unpredictable factors, including abrupt tariff policy changes.
Postponed IPOs:
Klarna: The Swedish fintech giant has paused its U.S. IPO plans due to market instability triggered by newly imposed tariffs.
StubHub: The online ticket exchange platform has delayed its IPO amid current market uncertainties.
Chime: The neobank has postponed its IPO plans in response to the recent stock market downturn.
eToro: The Israeli fintech company has delayed its U.S. IPO following market volatility.
Plaid: The financial services company has raised $575 million at a $6.1 billion valuation and stated it will not go public in 2025.
The anticipated surge of IPOs in 2025 now seems improbable. Many venture capital funds from the pandemic period were already lagging in delivering actual returns (DPI) to their limited partners. This year was expected to see public offerings providing much-needed liquidity.
Consequently, the secondary market is likely to attract increased attention, presenting a potentially rich environment for investors. We will continue to monitor key IPO developments in our IPO Barometer.
Robotics Sector Poised to Address Challenges from New Tariffs
Amid the recent implementation of tariffs by President Trump, discussions have emerged about the potential role of artificial intelligence (AI) and robotics in mitigating associated challenges. Eric Newcomer highlighted that AI could facilitate the replacement of costly American labor with robots and software, suggesting that even if manufacturing returns to the U.S., it may not result in the reinstatement of human jobs.
Economists echo this sentiment, warning that these tariffs might inadvertently accelerate automation rather than bolster job creation. Due to higher labor costs in the U.S., companies may find it more economical to invest in AI and robotic alternatives instead of human workers.
Watch most active Robotic companies on the secondary market:
https://app.launchbay.digital/products?industry=94&status=ALL
Surge in Primary Funding Rounds Amid Market Volatility
Despite a challenging market environment, several companies have successfully secured significant funding:
Figure AI is planning to raise between $1 billion and $2 billion at a pre-money valuation of $38.5 billion.
Plaid completed a $575 million funding round, resulting in a post-money valuation of $6.1 billion.
Runway raised $308 million in a Series D round, bringing its valuation to over $3 billion.
Replit, an AI coding startup, is in discussions to raise approximately $200 million at a $3 billion valuation.
Mysten Labs secured $140 million, achieving a $2 billion valuation.
Cyberhaven, a data security firm, raised $100 million in Series D funding, reaching a $1 billion valuation.
SandboxAQ closed a Series E round with over $450 million, increasing its total funding to $950 million.
Redpanda secured $100 million in Series D funding, attaining a $1 billion valuation.
Zepz, the parent company of WorldRemit and Sendwave, obtained $165 million in growth financing.
Additionally, Glean is in talks to raise hundreds of millions, potentially valuing the company at $7 billion.
Cato Networks is seeking funding that could value it at $4.5 billion.
French fintech Pennylane doubled its valuation to $2.2 billion, with Alphabet's venture arm taking a stake.