Pre-IPO Pulse and Private Equity Trends

It’s hard to believe, but October is coming to a close, the secondary market continues to experience fluctuations shaped by shifting investor sentiment and evolving market conditions—some of them political. Recent developments bring to bear a mix of caution and optimism.

Here’s a closer look at the some significant trends this week, and their implications for both institutional and retail investors.

Surge in Secondary Market Activity for Pre-IPO Companies

This week saw heightened activity in secondary markets, driven by companies delaying their IPOs until 2025 due to volatile market conditions. As a result, investors seeking liquidity are increasingly turning to secondary transactions. Companies like Klarna and Turo have seen significant secondary trading ahead of their potential public listings in 2025.

Harry's Prepares for IPO

The hygiene brand (and meme-champion) Harry’s, known for its shaving products as well as its ubiquitous social media presence, has been quietly preparing for an IPO. This week, there was renewed interest in the company's pre-IPO shares as it looks to capitalize on its profitability and customer base of over two million.

Positive Momentum Building for the 2025 IPO Market

While the IPO window remains narrow in 2024, insiders are predicting a significant rebound in 2025. Companies like Shein and Starlink (investment opportunities currently available through Sand Hill Road Technologies Fund) are waiting for more favorable conditions to launch their offerings, with some positive momentum already being as recently as Q3 2024—as inflation stabilizes and public markets moderate a bit.

Liquid Death Nears $1 Billion Valuation Pre-IPO

Who knew a tongue-in-cheek canned water could be so quirky yet so popular? The trendy beverage company Liquid Death is making headlines as it approaches a potential IPO in 2025. The company’s valuation is estimated to be around $1 billion, with its game-changing marketing strategy continuing to attract both customers and investors. For the record, our favorite flavor is ‘Dead Billionaire.’

ServiceTitan Back in the Spotlight

Chatter about an initial public offering are starting to heat up again for ServiceTitan, the software company supporting tradespeople. After pausing its IPO plans in 2022, it now appears ready to take the next step, reflecting a broader trend of tech companies testing the IPO waters—even publicly—as market conditions improve. Think of it as a dress rehearsal before the big show.

Stay tuned for further updates as the market continues to evolve—2024 is far from over, and the secondary market remains a pivotal space for tapping unlocked value.