The coming year should prove to be a very active time for tech IPOs. There are numerous online companies that have recently experienced substantial growth and they seem to be gearing up to go public within the next twelve months, so without further ado here’s our speculative preview of the Top 10 Tech IPOs of 2013 and 2014:
Dropbox is considered one of the world leaders in cloud-based data storage. It is a free service that allows you to access your documents, photos, and files from anywhere with internet access. Dropbox was originally popular with design professionals and consumers who needed to transfer and store large files, but they announced several new features in February that are aimed more at business clientele. Dropbox has already established a solid base of active users which currently exceeds a hundred million people. It also boasts that 95% of the top Fortune 500 companies are using Dropbox daily. This tech company has recently experienced around $4 billion in growth and is expected to be headed towards IPO in 2013.
Square creates applications that can transform smartphones into payment-processing devices. The company allows participants to accept credit cards through their mobile phone, and they can easily turn an iPad into a register that will also accept credit card payments. This is an ideal solution for businesses that conduct deals outside of a regular office space. A Square IPO is predicted to be one of the largest Initial Public Offerings in 2013. This relatively new company has experienced approximately $4 billion in growth, and their recent partnership with Starbucks has amplified its end-of-the-year valuation to an estimated $5.5 billion.
Twitter is a leading social media platform that has experienced some significant growth in the past few years. Users can express themselves, promote their businesses, or comment on current events publicly using 140 characters or less. Well-known tech leaders like Google, Dell, and Comcast use Twitter regularly to launch new products and advise customers on technical issues. Twitter has over 500 million registered users, although approximately only 200 million are actively Tweeting every day. There are clear signs that Twitter will be going public in the beginning of 2014, and this initial offering would value the company at more than $10 billion dollars.
SurveyMonkey is a cloud-based survey development company that assists customers in collecting over 1.5 million online survey responses every day. Last year there were 14 million users, approximately 360,000 customers who paid extra for enhanced features, and 65 million monthly online visitors. SurveryMonkey’s revenue last year was an impressive $113 million, and that is estimated to increase by more than 40% this year. The CEO, Dave Goldberg, claims he is against going public and recently received funding from Google to prevent it from happening, but insiders insist that it is only a matter of time before SurveyMonkey goes public.
Eventbrite is a website that assists organizers in planning large events. It allows users to setup ticket sales, promote events on social media sites, and even offers post-event reports for organizers to reference. Eventbrite currently has 20 million users and are expected to reach $1 billion in event ticket sales this year. The company is growing quickly and actually doubled their ticket sales since last February. The company decided in April to postpone an IPO, but many analysts feel it is inevitable. Eventbrite is currently valued between $600 and $700 million and recently raised $60 million in growth funding from T. Rowe Price and Tiger Global Marketing.
SugarCRM is a software company that produces a customer relationship management (CRM) system available for both open-source and commercial applications. The program currently has sold 11 billion downloads and recently announced the introduction of a more social version called Sugar 7. Sugar 7 was designed with better activity news feeds that are fully CRM integrated. This will offer businesses real-time information about every deal, account, and contact. SugarCRM has benefited from a 67% increase in customers and currently has $79 million in funding, which includes a $33 million dollar boost in April. Their CEO, Larry Augustin, announced at the end of 2012 that their goal was to become a public company and many investors forecast this will take place within the next few months.
Spotify provides streaming music on your computer or tablet, your mobile phone, and your home entertainment system. It allows you to download songs for offline use, share songs and playlists with your friends, and even lets people work together to create collaborative playlists. At the end of 2012, Spotify had 20 million active worldwide users, which was up 33% in less than six months. It also has 5 million paid subscription users that can listen to the music without any interruptions from commercials. The company has recently signed a partnership agreement with Ford to provide its music services in their vehicles. Spotify has also recently revamped its iOS and Windows 8 apps to inspire further growth. These are all solid signs that IPO will occur in 2013.
Zendesk is web-based software that offers customer service solutions for big businesses. It raised sixty million in September of 2012 and provides online customer support to approximately twenty-five thousand enterprises. It is estimated that through these businesses, Zendesk currently serves around seventy-five million different clients across the world. Zendesk recently announced an iPad app with a new reporting dashboard and customer history feature that allows performance to be monitored from anywhere. Based on Zendesk’s growth and innovation, it should come as no surprise that they have been dropping several hints that an IPO could happen in 2013.
Hubspot is comprehensive and integrated marketing software that combines social media, blogging, analytics, email, and automation into one convenient package. There are currently over 8,000 companies in fifty-six countries that use Hubspot to create inbound marketing to attract, nurture and convert leads into revenue. This tech leader has also developed the popular website analysis tool, MarketingGrader.com, which has over three million users and grades more than a quarter million companies each month. HubSpot benefited from 82% growth in 2012 and has an estimated valuation of $52.5 million. Hubspot recently raised $35 million in new funding and many people feel it is a likely candidate for IPO in 2013.
Box offers cloud-based file sharing and content management services for many large global companies like Skype, Pandora, Panasonic and LinkedIn. In fact, it is currently being used by more than 150,000 companies across the world to connect online workspaces and simplify their online file storage process. Earlier this year, Box agreed to acquire Crocodoc which is another web-based document sharing and embedding service. This is a clear sign of growth and the potential to go public. Box is valued at approximately $1.2 billion, and it is expected to pursue IPO valuation once it reaches closer to $3 billion.