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The Big One: The IPO pipeline
With Reddit the latest tech firm set to take the IPO plunge, which venture capital-backed startups are next in the initial public offering pipeline? Gaming juggernaut Epic Games, digital-health startup Noom and fintech giant Stripe, among others.
That's according to venture-capital data firm PitchBook, which recently published its list of 20 VC-backed startups primed for a potential IPO this year.
As the stock market hits new heights in 2024, startups and their venture-capital backers wonder if the IPO window may finally be opening after two years of little IPO activity from the tech sector. In its report, PitchBook identified 20 possible IPO candidates this year based on factors like revenue growth, business model and the quality of their management teams.
Reddit's IPO filing could be an indicator more startups are finally ready to take the leap to go public, but PitchBook warns enthusiasm for public offerings may still be muted. The market's gains have largely been fueled by "technology stalwarts with strong operating fundamentals," rather than "speculative startups with unproven track records."
PitchBook said its data shows tech startups have "dramatically underperformed" the broader market over the past five years, which could lead to a slower trickle of tech IPOs in 2024.
READ MORE: Are these startups next in the IPO pipeline?
Startups to Watch
- Former Nestle executive Pete Blackshaw and Hank Hudepohl, a former VP of core products at Paycor, launched a new startup called Brandrank.ai, which gives businesses the insights and guidance they need to protect and grow their brands in the age of generative artificial intelligence. The startup, whose initial focus is on how the AI search experience will impact brands, said it's landed a pilot deal with the Better Business Bureau, Cincy Inno reports.
- C2N Diagnostics, a St. Louis-based biotechnology firm, has created a blood test designed to help doctors detect Alzheimer's disease. It just raised $15 million in funding for its PrecivityAD blood test, which is used by doctors to assist with diagnosis of Alzheimer's disease. C2N rolled out the test in 2020 and has billed itself as the first company to offer a widely accessible blood test for the disease, St. Louis Inno reports.
- Boston dental artificial-intelligence startup Overjet has raised $53.2 million in a Series C round, bringing the company’s total funding to $133 million. Overjet uses computer vision to analyze dental X-rays, and the technology is used by dentists to diagnose cavities or dental bone loss. It can also translate X-ray data into language that’s better understood by patients and review insurance information, BostInno reports.
- NightCap, maker of a stretchy drink covering used to keep out drugs, bugs or debris from your drink, now sells in all 400 Forever 21 stores after the founders pitched Forever 21 CEO Winnie Park at a business event. The deal comes after NightCap landed a check from Lori Greiner during an episode of "Shark Tank," Tampa Bay Inno reports.
- Quorum Analytics, a Washington, D.C. tech firm, has built an artificial intelligence-powered tool that can summarize complex bills or regulations in seconds. The company, which formally unveiled its new AI tools this week, says it can sift through thousands of pages of text to produce insights and summaries based solely on the contents of the provided legislative bills, DC Inno reports.
Bickering Billionares
Tesla CEO and X owner Elon Musk is now goading OpenAI to change its name in exchange for Musk dropping a lawsuit he filed against the company last week, Bay Area Inno reports.
"Change your name (t)o ClosedAI and I will drop the lawsuit," Musk posted late Tuesday evening on X.
The post was a response to a post from OpenAI, which had just published a string of previously private communications between Musk and co-founders Sam Altman, Greg Brockman and Ilya Sutskever.
In a blog post, OpenAI refuted many of Musk's allegations and said it would seek a dismissal of the lawsuit. Since leaving the organization in 2018, Musk has openly criticized OpenAI for adding a for-profit arm, working with Microsoft Corp. and veering towards a more closed-source model of software development.
READ MORE: Elon Musk taunts OpenAI to change name in exchange for dropping lawsuit
Weird and Wired: A flying car that fits in your garage
Doroni Aerospace recently unveiled an updated design for an electric vertical takeoff and landing vehicle made to fit in a home garage. The company is the maker of an eVTOL designed for personal use. The idea is to bring the electric aircraft to everyday consumers who want a novel way to commute and bypass road traffic.
With a flying range of 60 miles per trip, the vehicle is being marketed to affluent commuters who want to avoid traffic congestion, Miami Inno reports.
READ MORE: 'Flying car' that fits in home garage unveiled by Miami-area company
