Billion-Dollar Companies Queue Up for Public Debuts
Circle's success has validated investor appetite for high-quality private companies, with several major players now preparing their own public offerings. Digital banking startup Chime Financial said on Monday it was targeting a valuation of up to $11.2 billion on a fully diluted basis in its long-awaited New York initial public offering, with shares expected to price between $24 and $26.
Meanwhile, Stripe is always an upcoming IPO contender, and has stated it is IPO-ready and can move forward when it wants to, with a valuation of $91.5 billion after a recent tender offer. Databricks completed a fresh round of private funding that raised $500 million at a $43 billion valuation, positioning itself as another potential mega-IPO candidate.
This Time Is Different: Real Revenue Meets Market Reality
Unlike the 2021 IPO frenzy that prioritized growth over profitability, today's candidates are showcasing sustainable business models. Chime generated $1.67 billion in revenue in 2024 and booked a roughly $25.3 million net loss, with revenue increasing nearly 31% year over year while losses narrowed.
Key Market Shifts:
• CoreWeave's revenue soared 737% in 2024 to reach $1.9 billion, demonstrating explosive growth in AI infrastructure
• Fintech multiples climbed to 5.6x in Q4 2024, up from 4.8x a year earlier
• Public investors now reward profitability over pure growth
• Focus has shifted from "growth at any cost" to proven unit economics
Market Validation Creates Momentum for More Debuts
Circle's stellar performance serves as crucial market validation that could accelerate other IPO timelines. A successful IPO for Chime could pave the way for other fintech companies that have recently considered tapping public markets, according to Reuters reporting.
CoreWeave is gearing up to lead an "IPO parade," clearing out some of the backlog of tech companies that would have gone public already if not for market conditions. Investment banking sources suggest that multiple companies are now reassessing their go-public timelines, with some potentially moving forward announcements that were previously planned for later in the year.
AI and Fintech Lead the Charge Across Multiple Sectors
The current IPO pipeline spans multiple high-growth sectors beyond just crypto and payments. The health care and technology sectors led the activity in Q1 2025, while significant deals across various industries pointed to broader market interest.
CoreWeave, whose customers include big tech companies including Meta, IBM, and Microsoft, is expected to target a valuation of more than $35 billion in its stock market listing. The artificial intelligence infrastructure boom has created particular investor interest, with companies serving the growing demand for AI computing power attracting significant attention from public market investors.
What This Could Mean for Investors
Investment Opportunities: The reopening of the IPO market presents both significant opportunities and risks for individual investors seeking exposure to high-growth companies before they become widely recognized.
Historical Context: Those who positioned themselves in quality IPOs during previous market recoveries have historically captured substantial returns as institutional money flows into newly public companies.
Current Advantage: The current environment offers a rare window to access companies with proven business models, substantial revenue growth, and clear competitive advantages—factors that were often missing during the speculative 2021 IPO boom.
However, investors should carefully evaluate each opportunity based on fundamentals rather than momentum, as not every debut will match Circle's exceptional performance. The focus should remain on companies with sustainable competitive advantages, proven management teams, and clear paths to profitability in their respective markets.