List of Upcoming IPOs in 2020–2021 / Part 7

Briefly about the market,

The impact of the COVID-19 pandemic continued to play a significant role in declining IPO activity in the first half of 2020. Overall, Q2 2020 saw a decline in IPO activity from Q2 2019 across all regions by deal numbers and for the Americas and EMEIA by proceeds.

Global IPO activity slowed dramatically in April and May, with a 48% decrease by volume (97 deals) and a 67% decrease in proceeds (US$13.2b) compared to April and May 2019. This dragged down 1H 2020 regional activities compared with 1H 2019 and overall YTD deal volume (419 deals) and proceeds (US$69.5b) decreased 19% and 8%, respectively, from YTD 2019. Despite a late flurry of deals in June, global IPO activity was sluggish on Americas and EMEIA stock exchanges YTD, while Asia-Pacific IPO activity increased. Americas deal volume (81 deals) and proceeds (US$24.5b) both fell by 30% compared with YTD 2019, while EMEIA IPO deal volume (68 deals) and proceeds (US$10.1b) fell 50% and 44%, respectively. Asia-Pacific IPO activity rose 2% by deal numbers (270 deals) and rose 56% by proceeds (US$34.9b) compared with YTD 2019.

The technology, industry and health sectors dominated IPO activity in the first half of 2020

The technology, industrials and health care sectors dominated in YTD 2020. Technology saw 87 IPOs raise US$17.2b, industrials saw 83 IPOs raise US$9.6b and health care had 76 IPOs that raised US$15.9b.

America's deal landscape slows

US exchanges still accounted for the majority of IPOs in the Americas in the first half of 2020, with 79% by deal volume (64 deals) and 91% by proceeds (US$22.3b); this included five unicorn IPOs. The health care and technology sectors continued to have the highest level of IPO activity in the US in YTD 2020, representing 55% and 25% by deal volume, respectively. The health care sector dominated in proceeds (US$10.2b), contributing 46%, from 35 IPOs.

The Mexican stock exchange posted one IPO valued at US$1.1b, making it the eighth-largest IPO globally in Q2 2020.

Let’s take a look at private companies that might be public soon.

Compass IPO (Forecast Q4 2020 or Q1 2021)

• Founded Date — 2012 (HQ, NY, US)
• Founders — Ori Allon, Robert Reffkin, Ugo Di Girolamo

Funding traction, total raised ~$1.6B + secure transactions

• Series A — 2013 at val. $150M, $10 pps
• Series B — 2014 at val. $370M, $20.77 pps
• Series C — 2015 at val. $800M, $40.50 pps
• Series D — 2016 at val. $1B, $42.63 pps
• Series E — 2017 at val. $1.8B, $67.48 pps
• Series E1–2018 at val. $2.2B, $67.48 pps
• Series F — 2018 at val. $4.4B, $118.57 pps
• Series G — 2019 at val. $6.4B, $154.27 pps

Real estate platform Compass raises another $370M on a $6.4B valuation en route to an IPO (source)

Hims SPAC (Forecast Q4 2020)

• Founded Date — 2017 (HQ, SF, CA)
• Founders — Andrew Dudum, Hilary Coles, Jack Abraham

Funding traction — n/a

Hims, a telehealth company that offers personal health and wellness products, is in negotiations to go public by merging with blank-check company Oaktree Acquisition, according to Bloomberg. The deal could reportedly value Hims at roughly $2 billion, with the Oaktree Capital-backed special-purpose acquisition company looking to raise $100 million to help fund the merger. Since it was established in 2017, Hims has raised just shy of $200 million from backers including 7 Global Capital and 8VC; it was valued at $1.1 billion in January 2019

Outreach IPO (Forecast Q2 2021)

• Founded Date — 2014 (HQ, Greater Seattle Area, West Coast, Western US)
• Founders — Andrew Kinzer, Gordon Hempton, Manny Medina, Wes Hather

Funding traction, total raised ~$289M

• Series A — 2015 at val. $29M, $0.64 pps
• Series B — 2016 at val. $69M, $1.15 pps
• Series C — 2017 at val. $170M, $2.41 pps
• Series D — 2018 at val. $430M, $4.99 pps
• Series E — 2019 at val. $1.1B, $9.18 pps

After raising big round, Outreach CEO talks post-unicorn life, IPO plans, creating culture, and more (source)

Lookout IPO (Forecast Q4 2021 or Q2 2022)

• Founded Date — 2007 (HQ, SF, CA)
• Founders — James Burgess, John Hering, Kevin Mahaffey

Funding traction, total raised ~$282M + secure transactions

• Series A — 2008 at val. $8.5M, $0.22 pps
• Series B — 2010 at val. $48M, $0.79 pps
• Series C — 2010 at val. $130M, $1.73 pps
• Series D — 2011 at val. $330M, $3.89 pps
• Series E — 2012 at val. $770M, $7.94 pps
• Series F — 2014 at val. $1.5B, $11.42 pps
• Series F1–2014 at val. $1.7B, $11.42 pps

Ginkgo Bioworks IPO (Forecast 2021)

• Founded Date — 2008 (HQ, Boston, Massachusetts)
• Founders — Austin Che, Barry Canton, Jason Kelly, Reshma Shetty, Tom Knight

Funding traction, total raised ~$790M + secure transactions

• Series A — 2015 at val. $140M, $12.83 pps
• Series B — 2015 at val. $200M, $12.83 pps
• Series C — 2016 at val. $450M, $21.23 pps
• Series D — 2017 at val. $1.3B, $47.41 pps
• Series E — 2019 at val. $4.4B, $150.19 pps

Digital Ocean IPO (Forecast Q4 2020 or Q1 2021)

• Founded Date — 2012 (HQ, NY)
• Founders — Alec Hartman, Ben Uretsky, Jeff Carr, Mitch Wainer, Moisey Uretsky

Funding traction, total raised ~$456M + secure transactions

• Series A — 2014 at val. $150M, $2.07 pps
• Series B — 2015 at val. $680M, $8.11 pps
• Series C — 2020 at val. $1.2B, $10.59 pps

The CEO told that “the IPO option for DigitalOcean is on the table,” going on to cite his company’s growth, growth rate, operating margins, “soon-to-be free cash flow margins” and scale as allowing the upstart “to have the conversation that this is a company that could go public.” (source)

To be continued…

👉 PART 1 👉 PART 2 👉 PART 3

👉 PART 4 👉 PART 5 👉 PART 6

👉 PART 7 👉 PART 8

About the Author

Mr. Koch — a serial entrepreneur and late-stage investor specializing in secondary shares.

Previously: Twilio, Xiaomi, iQiyi, Tilray, Livongo, Bandwidth.

Currently: Robinhood, Grab, Toss, Coursera, Epic Games, Chime, and other companies.

Contact — here, If you are a startup building in this space — email or DM me to be included on this article.

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The content was collected from various open sources, approved by companies, and does not provide any one-stop recommendation for the purchase of shares. All data was used for only informational purposes and does not contain insider information that may be malicious or refuted by the company and SEC.

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