Hot IPOs are rare in 2022. These startup stocks are still generating investor interest
Remember way back in 2021 when IPOs and SPACs were driving a clearly unsustainable wave of stock listings? That may seem like a bygone era in a year of catering share prices, tech layoffs, and scaled-down company ambitions, but the market slowdown hasn’t stopped investors in high-profile startups from salivating over the next potential big exit.
Equitybee, a digital platform that lets startup employees take advantage of their stock options, is giving us a glimpse at the most sought-after private companies among investors, courtesy of a new ranking it calls the Equitybee 100. The full list will be released on Tuesday, but Equitybee provided Fast Company with an early look. Startups are ranked based on the demand they are generating among 20,000 investors who use the Equitybee platform. Here are the top 20 companies along with their corresponding sectors:
As you can see, investors are still bullish on big data, consumer tech, and fintech, which may not be all that surprising. Fintech, especially, has managed to buck recent slowdown trends, with companies in the sector still hiring like it was 2021, according to recent data from LinkedIn.
In the past, Equitybee’s lists have been a good indicator of which high-profile companies are nearing an IPO. Two years ago, Airbnb, Robinhood, and Coinbase all appeared in the top 10. But IPO activity has declined dramatically since then, in part because so many of the hyped-up public listings of 2021 have faltered this year as markets have spiraled downward. Companies have been much more cautious in recent months, with some delaying their IPO plans indefinitely. Reddit, for instance—No. 5 on Equitybee’s list—hasn’t said much about its plans after generating a lot of excitement in December with a confidential filing. Meanwhile, SpaceX has continually appears on Equitybee’s lists, despite the company being in no particular hurry to go public.
And it’s not just American companies. According to a report from accounting firm EY, the number of global IPOs declined 46% in the second quarter of 2022, with proceeds dropping 58% to $95.4 billion.
Equitybee says it expanded its list from 10 to 100 companies this year amid economic uncertainty and “major shifts in demand.” The platform typically announces these companies at the end of the year, but it’s putting this year’s list out now to “provide a current state-of-the-union perspective” for investors. We’ll link back to the full list once it’s live.
Update: It’s live.
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