Ready to enter the ground floor of something big?
Airbnb and DoorDash ended 2020 with eye-popping initial public offerings, and you shouldn’t expect 2021 to be less flashy. More big tech companies are getting ready to go public, and you probably use at least one of these services.
Whether you are an experienced investor or are entering the world of stocks for the first time, it is worth knowing what is to come.
Here are eight of the best IPOs investors are looking forward to in 2021.
1. Instacart
When the coronavirus pandemic hit the United States in March, most companies faced a rather bleak forecast of layoffs, licenses and bankruptcies.
But some companies were perfectly positioned for a dramatic change in consumer behavior. Instacart, an online food delivery company, is one of those “right place, right time” companies.
It now partners with more than 500 retailers to provide delivery from nearly 40,000 locations in the United States and Canada. And after a recent round of financing, Instacart says it will expand to include even more retailers.
An IPO is still in the rumor stage; there has been no filing or announcement yet. Yet, Reuters reports that the San Francisco-based company has already hired investment bank Goldman Sachs to help prepare an IPO valued at about $ 30 billion.
2. Bumble
Yes, Bumble’s IPO is generating a serious buzz.
Leaving aside the puns, the company is prepared to take advantage of the growing boom in virtual dating. With closed bars, postponed shows, forbidden home parties and remote workplaces, where else would you find a potential partner?
Tinder may still be the best dating app, but Bumble is climbing through the ranks. The female app allows women to take the first step, and it has moved beyond dating to include social and professional networks as well.
Match Group, the parent company of Tinder and a variety of other dating apps, offered to purchase Bumble for $ 450 million in 2017. But since then, the dating app has grown from 22 million users to over 100 million, from according to various media reports.
Bumble is preparing for an initial public offering that may take place in early 2021 and is seeking a valuation of $ 6 billion to $ 8 billion, says BNN Bloomberg.
3. Robinhood
Robinhood helped to bring simple investments to the masses. By eliminating commission and trading fees, the app ensures that every dollar you earn remains in your account.
It turns out that Americans – especially young Americans – are very interested. The app has accumulated more than 13 million users, including 3 million who joined in the first quarter of 2020 alone.
Once your application is approved, you can transfer funds to your account and start investing right away.
The company chose Goldman Sachs to lead the preparations for an IPO in 2021, which could value it by more than $ 20 billion.
4. Nextdoor
Are you feeling a little distant from your neighbors today? Instead of getting caught up in the giant known as Facebook, some Americans have turned to neighborhood apps like Nextdoor to replace their neighborhood parties.
At Nextdoor, you can sell your old television, ask for advice on where to find great vacation deals, or report an astute coyote wandering the area.
Nextdoor says the app now includes 250,000 neighborhoods, spanning 11 countries.
The company targets a valuation of between US $ 4 and US $ 5 billion, according to Bloomberg.
5. GitLab
GitLab, a website that helps developers share and manage code, had IPO aspirations as early as 2017.
He had recently planned to go public in November 2020, before postponing the date after the COVID-19 pandemic started to sink the economy.
Sid Sijbrandij, co-founder and CEO of GitLab, said CNBC during the summer that “we will leave when we and the markets are ready”.
The company is allowing some employees to sell a portion of its equity in an offering that values GitLab at more than $ 6 billion, CNBC reports.
6. Stripe
Another trend that benefited from the pandemic: digital payments.
Online shopping is more popular than ever and most Americans can even imagine a future without money. Stripe, a payment processing platform, is positioned to reach new heights as the change in consumer behavior continues.
Stripe helps companies large and small to accept digital transactions – and large companies are certainly represented. Stripe handles heavyweight transactions like Amazon, Lyft, Instacart and Pinterest.
Bloomberg reports that the fintech company is considering another round of financing that would increase its valuation to $ 70 billion or even $ 100 billion.
Stripe has consistently denied that he is planning an IPO, but that has not stopped anxious investors from raising their expectations with each major venture.
7. Squarespace
Have you explored the idea of making your own website? Even if you haven’t seen it, you’ve probably seen ads from Squarespace, which allows you to create and host a website without worrying about all that annoying coding.
The company is seeking an IPO in the first half of 2021, according to Bloomberg. It was valued at $ 1.7 billion in 2017 and expects to exceed it in an IPO.
Several of Squarespace’s main rivals already have publicly traded shares, including Wix.com and GoDaddy.
8. Coursera
Unlike some of its competitors in the online education space, Coursera doesn’t just offer casual classes to increase your knowledge. The platform works with more than 200 universities and companies to offer professional certification and even degree programs.
Online learning was already on the rise before the pandemic. Now, more and more Americans are using the Internet to pursue profitable and stable careers. In November, New York Governor Andrew Cuomo launched a free online learning platform – developed by Coursera – to help unemployed and underemployed New Yorkers advance their job prospects.
Coursera is considering an IPO that would give it a valuation close to $ 5 billion, Bloomberg reports.
How do I invest in an IPO?
Who doesn’t love a good launch party? With a lot of exciting companies looking to go public in 2021, now may be the time to finally take action.
Robinhood is not just ready for an IPO this year; it is also the simplest way to invest in other inspiring companies. Just download the application, fill out a form and transfer funds to your account. The best part? No trading fees.
If you want to invest, but are not sure how to choose individual stocks, you can try automated investment. Acorns is an application that offers five different investment portfolios that automatically adjust your combination of stocks and other assets to protect you when markets are falling.
One nice thing about Acorns is that you can add to your account using your spare change. A debit card linked to the app rounds up your purchases to the nearest dollar and invests the difference.