A record-breaking number of 2,097 companies went public in 2021, raising $402 billion as of December 2021 globally – and beat the previous record of less than $200 billion in 2020. Bumble (BMBL), Rivian Automotive Inc. (RIVN), Roblox Corp. (ticker: RBLX) and GitLab (GTLB) were some of the year’s most notable debuts setting the benchmark for 2022.
This year has already started with a bang with the debut of multiple tech stocks. With several impactful companies in line to launch their much-awaited IPO’s, here are four of the most anticipated potential IPOs to get your hands on in 2022.
1. Discord
The chat app Discord has already gained momentum and is one of the strongest contenders expected to hit the IPO altar in 2022. The company is a front-runner for gamers and cryptocurrency projects; the young app reportedly doubled its users in 2020 as COVID-19 forced people to connect virtually. The company already has 6.7 million active servers, a growing number of which are not gaming related. While Discord is still predominantly for gamers, the team has attempted to broaden their coverage to compete with Microsoft Teams and Slack. They have over 140 million active monthly users and 300 million registered accounts. In 2021, it was valued at $7 billion, doubling its value in under a year. By September 2021, the company raised $500 million at a $15 billion valuation, making it the anticipated IPO gem of 2022.
2. Instacart
Another pandemic hit, this online grocery-delivery company, created waves during the pandemic. The Founder, Apoorva Mehta, declared his intention to take the company public in 2019, but the company has been equivocal about an IPO ever since. During the start of COVID-19, in 2020, Instacart’s revenue tripled to $1.5 billion–valuing the company at $39 billion. In 2021, Fidji Simo took over as the CEO and reportedly had plans to continue to focus on growth and broadening Instacart’s services, a good sign for long-term investors. As of the company’s most recent round of funding in March 2021, Instacart has raised $265 million at a valuation of $39 billion from its existing venture capital investors, including Sequoia and D1 Capital Partners, Andreessen Horowitz, as well as existing institutional investors like Fidelity and T. Rowe Price.
3. Quora
According to an anonymous source who spoke to Reuters in November, the popular question-and-answer website has held talks to hire investment bankers and lawyers for an upcoming IPO. The company has refused to comment on a potential IPO in the future but has increased job listings since October, signaling an expansion. Quora is trying to make itself more attractive to creators and broaden their horizons by moving beyond Q&As. Adam D’Angelo, CEO of Quora, said in late August that they are “on track to be cash-flow positive from ads alone,” but that the organization is looking to branch into subscription revenue as well. They will be introducing Quora+, which allows creators to put content behind a paywall: Quora would take 5% of the subscription fee. The company was last valued at around $2 billion since the private funding round in 2019, and Reuters’ source said it hopes to be worth double that in an IPO that would make it an excellent investment to hold onto in the future.
4. Impossible Foods
Founded by Stanford Professor Patrick O. Brown, the plant-based protein products company Impossible Foods has made remarkable headway in inventing plant-based meats that are good for the planet. The company initially rolled out its faux burger patties in small markets and chains but quickly expanded to thousands of grocery stores across the US. The Redwood City, California-based company has more than 800 employees and has raised $1.5 billion in venture capital funding. This year, it will undoubtedly go public and is reportedly looking for a $10 billion valuation. A fast-growing industry with an increasing demand for veganism, Impossible Foods would be a great way to diversify your portfolio and gain good returns.
In conclusion, in the words of Warren Buffet, American Business Magnate and Investor, “I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.”
