CoreWeave Files for IPO—One of the Biggest Offerings Yet
This week, CoreWeave officially filed for an IPO, with expectations of a valuation exceeding $35 billion. The company has seen high liquidity for over six months and is a Launchbay25 Index member. In the secondary market, CoreWeave’s valuation surged from $17 billion in May 2024 to $31 billion today.
Explosive Growth, But at a Cost
CoreWeave’s revenue skyrocketed 8x in 2024, reaching $1.9 billion, but aggressive expansion came with a price—capital expenditures tripled to $8.5 billion, and the company posted a net loss of over $800 million. However, CoreWeave was profitable on an operating basis, excluding interest and accounting-related charges. The company has heavily relied on borrowing to scale its data centers.
Microsoft’s Role & Growth Uncertainty
A majority of CoreWeave’s signed contract revenue (60%) comes from Microsoft, which used CoreWeave’s infrastructure to meet urgent demand. However, Microsoft CEO Satya Nadella hinted in December that these deals were a “one-time thing”, raising concerns about long-term reliance on key customers. Microsoft’s contracts with CoreWeave expire by 2029, meaning the company must secure new customers to sustain its growth.
Strategic Moves: Acquiring Weights & Biases
To diversify its customer base, CoreWeave is in talks to acquire Weights & Biases for $1.7 billion. The startup’s AI development tools, used by companies like OpenAI, Siemens, and Salesforce, could help CoreWeave expand beyond its current cloud GPU rental model.
A Heavy Presence in the Secondary Market
CoreWeave’s IPO stands out due to its significant secondary market activity. Founders Mike Intrator, Brian Venturo, and Brannin McBee each sold at least $150 million worth of stock ahead of the public debut.
Additionally, the company conducted two major secondary sales in 2023 and 2024, selling a combined $1.3 billion of shares to investors like Fidelity, BlackRock, and Coatue Management—a larger pre-IPO stock sale than most recent tech IPOs.
For comparison:
Reddit CEO Steve Huffman sold $16 million in stock pre-IPO.
ServiceTitan founders also sold shares, but details weren’t disclosed.
WeWork’s Adam Neumann famously offloaded $300 million in stock in 2017, ahead of WeWork’s disastrous IPO attempt.
As CoreWeave prepares for its public debut, the industry will be watching to see whether its rapid growth can be sustained—or if the company will face challenges as key contracts expire.
Anthropic Secures $3.5 Billion at $61.5 Billion Valuation
Anthropic, another member of Launchbay25 Index, is finalizing a $3.5 billion funding round at a $61.5 billion valuation, with backing from Lightspeed, General Catalyst, and MGX. Initially targeting $2 billion, the AI startup expanded the round due to overwhelming investor demand.
Stripe’s New Tender Offer Values Company at $91.5 Billion
Stripe, a Launchbay25 Index member, has announced a new employee tender offer, setting its valuation at $91.5 billion—just shy of its $95 billion peak in the private markets.
Alongside the announcement, Stripe released its 2024 annual letter, packed with key insights:
Total Payment Volume (TPV): $1.4 trillion (+38% YoY), representing 1.3% of global GDP.
Profitability: Achieved in 2024, with expectations to maintain in 2025.
Revenue & Finance Automation Suite: $500M+ ARR, with Billing at its core.
Stablecoin Strategy: Transaction volumes doubled from Q4 2023 to Q4 2024, with 40 million active wallets.
Ramp Hits $13 Billion Valuation in Tender Offer Amid Rapid Growth
Ramp, the fintech startup behind corporate cards and expense management software, has been valued at $13 billion in a recent tender offer, allowing some employees and investors to cash out. The deal highlights renewed investor interest in high-growth startups.
The company’s growth has been remarkable—Ramp’s annualized revenue has surged to $700 million, more than doubling from $300 million in August 2023.
More Fintech Updates: Brex’s Revenue on Track for $500M in 2025
Brex projects its annual net revenue to hit $500 million in 2025, fueled by 80% year-over-year growth in its enterprise segment. The company now serves over 150 public companies, along with major private clients like Anthropic and Wiz.
Private Crypto Companies on the Secondary Market – February Recap
With crypto prices and public crypto stocks grabbing attention, what’s happening with private crypto companies?
In February, six crypto companies were active on the secondary market, up from four in January. The total listed volume of crypto-related shares nearly doubled, although the overall market also grew, so crypto still maintained its usual 2% share of total market volume.
The biggest mover was Ripple, whose share price almost doubled, likely driven by Trump’s proposal to include Ripple’s cryptocurrency in the new "strategic reserve."
Launchbay25 Index Sees 9% Growth in February
The Launchbay25 Index rose by 9% in February, driven by significant valuation increases from key companies. OpenAI led the charge with a 52% monthly valuation increase, followed by Glean at 26% and Anduril at 20%, making the biggest contributions to the overall growth.
Latest Primary Funding Rounds
Thinking Machines Lab, the AI startup led by Mira Murati, is in talks to raise $1 billion at a $9 billion valuation—despite not having launched a product yet.
NinjaOne, an IT startup, secured $500 million in a Series C extension round, co-led by Iconiq Growth and CapitalG.
Eikon Therapeutics, a biotech startup, raised $350.7 million in Series D from Lux Capital, The Column Group, AME Cloud Ventures, E15 VC, Foresite Capital, Soros Capital, and General Catalyst, among others.
Quantum Machines, a quantum computing startup, secured $170 million in Series C funding, led by PSG Equity, with participation from Intel Capital and Red Dot Capital Partners.
Raise, a crypto platform specializing in gift card transactions, raised $63 million in a round led by Haun Ventures, with backing from Paper Ventures, Selini Capital, and GSR Ventures.