2016 saw a dry spell for tech IPOs, but investors are already counting on 2017 to turn the tides.
Already, startups like AppDynamics and Snapchat have filed to go public in the new year. And our sources tell us there are many more in the pipeline.
Here’s a look at which tech startups are IPO candidates to watch in 2017.
- Dan Frommer, Business Insider
IPO chances: Already filed
OK, this one is a bit of a gimme.
AppDynamics filed on Dec. 28 to go public in the new year. It made a name for itself in a field called “application performance monitoring.” It watches extremely large and complicated software apps to give companies feedback on how those apps are behaving. They use AppDynamics to fix problems and to gain insight into what their customers are doing with their apps. The company is seeking to raise $100 million in the deal, and it’s looking to trade on the NASDAQ Global Select Market under the symbol APPD.
- AP/Jae C. Hong
IPO chances: Very likely
Snap Inc.’s IPO is already drawing comparisons to Facebook’s. Going public is likely, as the company has already chosen Morgan Stanley and Goldman Sachs as its bankers. In November, Snapchat’s parent company also confidentially filed its paperwork. Look for an IPO as early as March for the company.
IPO chances: Likely
HotelTonight reversed its course in 2016, laying off 20% of its staff after burning millions a month. Now, the company is profitable and its CEO has set his sights on another goal: going public. In an interview with Bloomberg, HotelTonight’s CEO Sam Shank said that he wants to take the company public, possibly by late 2017. Sources familiar with the company told Business Insider that they also expect it to go public in the next year.
- Louis Lanzano/Bloomberg
IPO chances: Likely
Music streaming service Spotify has been on the rumored IPO list for years, but 2017 is definitely on its radar, according to sources familiar with the company. In July, Bloomberg first reported that the company was aiming for the second half of 2017 for a potential public offering. Since then, the company has reportedly been tying up loose ends, consolidating its CEO and chairman roles, locating much of its financial operations in New York City, and also cutting off deal talks with SoundCloud.
- Business Insider
IPO chances: Possibility
Named one of the top five startups likely to IPO in 2017 by CB Insights, the billion-dollar, Utah-based startup is edging closer to an IPO as it brings on new leadership. Sources familiar with the company tell Business Insider that the survey and research company is definitely on track for an IPO.
IPO chances: Possibility
In April, Cloudera’s CEO Tom Reilly told Forbes that the company fully intends to go public. “We are of a size and scale today to be a successful public company. We’re operating well enough to be a well-run public company. It’s not a market that we’d want to enter as a public company right now,” he said at the time.
While Cloudera, a Hortonworks competitor, has been talking about going public for years, sources familiar with the company tell Business Insider that a 2017 IPO could be on the table as long as market conditions stay in its favor.
IPO chances: Possible
Like Cloudera, Dropbox has been sitting on the public market sidelines thanks to a market that hasn’t treated its rivals positively. That could change in 2017 though. According to Bloomberg, the company had exploratory talks with bankers about an IPO as early as 2017 and sources familiar tell Business Insider that it’s a possibility for the cloud storage company. Still, its CEO Drew Houston insists that it’s not in any rush to go public, having become free cash-flow positive since June. “We have the flexibility to go when the timing is right for us,” Houston told Business Insider in December.
- Mashable/Blue Apron
IPO chances: “On hold”
While sources familiar with Blue Apron’s financials have been spreading rumors of a 2017 IPO for awhile, it looks like the meal kit company is putting the plans on hold for now, according to a report from Bloomberg. The company is supposedly delaying the selection of bankers while it works to improve its margins and lower customer acquisition costs. An IPO in 2017 isn’t entirely ruled out yet.
The other contenders
- Facebook/Stitch Fix
Predicting IPOs in an unknown market is more of an art than a science. Here are the other companies rumored to be in the running for a 2017 IPO.
• Recode’s Jason Del Rey calls e-commerce companies Stich Fix, Chewy.Com, and Casper surprise contenders for an IPO in 2017.
• Reuters is predicting a spate of more “obscure unicorns” to go public including Apttus, Tintri, and Okta. It also identified companies such as Avalara, MuleSoft, ForeScout Technologies, and Yext as making preparations for a 2017 IPO.
• Venture capital database CB Insights listed Qualtrics, Blue Apron, Okta, Zuora, and Pluralsight as the top 5 IPO prospects. The other companies that have momentum towards an IPO, according to CB Insights, are Domo, Stripe, Unity, Airbnb, Glassdoor, Anaplan, Apttus, Uber, Instacart, Gusto, Credit Karma, CloudFlare, Sprinklr, MuleSoft, Slack, SoFi, BuzzFeed, Illumio, Thumbtack, AppNexus, InsideSales.com, Palantir, Medallia, and Tanium.