Toro, an emerging car rental company in San Francisco, has been trying to put it in public since 2021. But the volatile stock market in early 2022 has been late in its inclusion. Since then, the company has waited for the right moment.
Last week, Toro pulled its entire list. “Now is not the right time,” Andrei Haddad, CEO of the company, said in a statement.
For several months, investors have impatiently expected a wave of initial public offers driven by the new President Trump’s administration. Since his electoral victory in November, which has ended the season of a turbulent campaign, America Wall Street has operated the beginning of the supporter of business, Control of the organization a period. stock market Rise Before an expected reward for making deals.
However, the tariffs for management and rapid regulatory changes have created uncertainty and volatility. The increasing inflation started Market tensions. And the appearance of the Chinese artificial intelligence application Deepseek last month Investors caused skepticism in their optimistic bets on American technology, which leads to a Radical sales between Amnesty International shares.
All that affected the initial general offers. “The calendar has just moved from the entire reservation to being wide open in a period like three weeks,” said Phil Hasleti, founder of Equityzen, a site that helps private companies and their employees to sell their shares.
So far this year, the pace of public offers last year, as companies raised $ 6.6 billion in lists, an increase of 14 percent compared to this time last year, according to Renaissance Capital, which runs the money that focuses on public subscription.
However, there are no signs of the public subscription wave expected by many, especially from companies with large names that spent the past two years pending the advertisement. Regardless of the TURRRO list, CEREBRAS, an Amnesty International Figure Company Its investment bulletin was presented last fallAnd he was also delayed plans for the public.
It is too early to know whether the total economic concerns about inflation, interest rates and geopolitical risks will lead to changing other companies whose plans, said public subscription advisers and analysts. You are expected to expect more lists in the second half of the year.
“We need to allow more time to know where the administration begins to land on some of these main topics that lead some uncertainty,” said Rachel Gering, the leader of the American subscription for the two Americans in EY, accounting and professional services. firm. “Public subscription planning is still largely happening.”
Clarena, starting the lending, etoro, investment and trading provider, has been secretly provided to include their shares in recent months. But many of the most valuable private technology companies, including Stripe and Databrics, have indicated that they are planning to stay at a special level at the present time by collecting capital from the private market instead.
David Solomon, CEO of Coldman Sachs, said last month that one of the reasons that the public subscription activity was slow that startups can get the capital they need from private sector investors, David Solomon, CEO of Goldman Sachs, said last month. He said that Goldman helped Stripe, paid payments of $ 70 billion, raising billions of dollars last year.
He said in a conference Organized by Cisco.
To further mitigate the pressure for advertising, Stripe allowed its employees and shareholders to sell some of their shares regularly over the past few years, allowing them to overcome so that they do not press the company. Transactions, known as tender offers, also solves the problem of employee share whose validity ends and helps workers pay sales tax bills.
The number and size of giving offers in 2024, according to CartaA site that helps startups to manage their shareholders. Carta 77 customers made in 2024, an increase of 68 in 2023. They raised $ 3.5 billion in last year, more than twice 1.7 billion dollars raised in 2023.
Databricks, Amnesty International Data Company, collected $ 10 billion From investors in December. Part of the money went towards the operations, but Databricks said that some of them would also be used to allow current and former employees to seize their taxes.
Also in December, Veeam, a data company, said it raised $ 2 billion of financing that went to current investors. This year, Plaid Goldman Sachs rented to raise up to $ 400 million in a tender offer that would allow shareholders to leave, according to a person familiar with the matter.
Mr. Solomon said that he told the founders of startups often that there are three reasons for the brand in public, and two of them have been resolved-collecting money and allowing shareholders to sell their shares-before private markets.
The founders have advised the stadium “with great caution”, because doing so will change the way they run their business. “It is not fun to be a public company,” he said.
Companies that want to move to public places are waiting. Many stopped their plans in early 2022, when interest and war rates in Ukraine rocked the markets.
JUSTWORKS, a salary and benefits provider, was out of the position of public investors on a list in January 2022 when she decided to delay. Mike Cycles, chief operational officer at the time, said that it is tempting to turn to the arrows anyway, because a lot of work has gone to prepare for a general offer.
But with the passage of 2022, the market fluctuations and poor performance of the listed companies that have proven that Justworks had made the right contact, he said. JustWorks did not need capital – he had $ 125 million in the bank – and was profitable.
“It has begun to feel that we will force something, instead of taking advantage of a moment of extreme enthusiasm for our business,” said Mr. Selerter, who became the CEO in late 2022.
JustWorks ultimately canceled its list plans and not planning to try again any time soon. “Our time will come.”
A person familiar with the matter said that Navan, a software and expenses software maker, was provided with the public in 2022, but later he withdrew his plans. The person said that the emerging company recently went in an “non -degree” entertainment offer to meet investors and lay the foundation for an insertion in the second half of the year.
A person familiar with the matter said that Stubhub, the ticket company, which applied to the public in 2022, also aimed at listing its shares at some point this year.
With the volatile market, bankers pushed technology companies, which are often unanimous, to find a way to earn money. Bankers want startups to generate at least $ 200 million in annual revenue to challenge public investors. People said that if the company is smaller or loses money, investors want to see high revenue growth.
“The tape ascended to the type of companies that could be general,” said Amy Bouti, Financial Director in Navan.
Sanjay Duan, CEO of Symphonyai, a software company, said bankers asked him to reach 200 million dollars to $ 300 million of revenue before the announcement. He said that the company exceeded 400 million dollars last year and got a profit.
Mr. Dhawan added that he was waiting for clarity from the elections before the public subscription plans were set.
“Everyone knows how economic policies will look,” he said. “Everyone feels a little comfortable to start planning.” He added that the fluctuation of Deepseek was just a short -term reaction.
At least one technical company has recently arrived at public markets. On Thursday, SailPoint Technologies, a cybersecurity security company with the support of Thoma Bravo Special Stock Company, raised $ 1.38 billion in a public offer of about $ 12 billion. But his shares decreased by 4 percent from the public subscription price of $ 23 per share on the first day of trading.
“In order for the public party to continue,” said Mr. Haslit of Equityzen.
