What is an IPO?
An IPO or Initial Public Offering refers to when a company goes public for the first time. They get listed on the stock market and individuals can invest by buying shares.
IPOs are compelling investment opportunities but very easy to get wrong. Investing in the right IPO, however, can be very rewarding. This places IPOs amongst the best investment opportunities for new investors and we shall be making a list of Best IPOs to watch out for in 2021
Should you invest in an IPO?
Like all other investments, there is no guarantee that an IPO will turn out successful or unsuccessful. As a host of companies go public every year, it is left to the investor to analyze an initial public offering, to decide if it’s a good investment opportunity.
IPOs are generally great investments, especially if expert advice is considered. We gathered information from top analysts and investment experts, and we’ve compiled a list of the top IPOs you should look out for this year.
Best IPOs to watch out for in 2021
As expected last year, companies like Airbnb and Snowflake made their IPOs, and some delay it into 2021. Here are the best initial public offerings expected to hit the stock market this year.
2021 has been an eventful year in the crypto world, with Bitcoin and Ethereum reaching and smashing their all-time highs. If there’s a company that’s gaining from this, it would be Coinbase. It is currently the largest cryptocurrency exchange in the United States.
Coinbase made impressive amounts at funding events, with the last one in 2018 when it generated over $300 million with an $8 billion valuation.
Having announced plans for an IPO, Coinbase is expected to have its IPO early into the year, with an expected valuation exceeding $20 billion. When it happens, Coinbase will be the first cryptocurrency exchange to go public, promoting public interest in the industry.
Stripe is projected to be one of the biggest IPOs of 2020, valued at around $36 billion. The hugely popular fintech firm has achieved massive success, acquiring other Paystack and Payable in 2020, amongst others.
The payment processor grew popular amongst developers for offering an easy to use digital payment system, requiring developers to add just seven lines of code to their
The pandemic, which led to a rise in online shopping made Stripe inevitable, and Stripe also acquired many of its smaller competitors in the process.
While it is not certain if Stripe will be going public in 2021, there’s a good chance this will happen. If it does, it will be the biggest initial public offering of the year, undoubtedly.
Apoorva Mehta left Amazon to find Instacart, a business focused on delivering groceries and other products to consumers.
Instacart remained a modest company for years, until 2020 when the pandemic forced most people to shop from home. This suddenly spiked the demand for the services of Instacart, leading to the exponential growth of the company.
Today, Instacart has built a network that could reach about 80% of households in the United States. This makes it one of the most valuable private companies in the United States, and its IPO is expected anytime in 2020.
With a valuation of $17 billion, Instacart will be one of the largest IPOs to see in 2021 if they decided to go public.
Robinhood was one of the companies expected to go public last year but held on. This year, chances are great that the online stock brokerage will offer its IPO early this year.
Robinhood was born in 2013 when there was already an abundance of online stock trading platforms on the market. However, its user-first policies gained positive affirmation from investors. By early 2020, Robinhood could boast of 13 million user accounts.
Robinhood is currently valued at around $20 billion, and its IPO could also be one of the largest we’ll see in 2021. Although it has had its fair share of regulatory issues, investing in Robinhood shares at its IPO shouldn’t be a wrong idea.
Nextdoor started quite strangely in 2008. Most social networks pride themselves on connecting you with the wider world. However, in the case of Nextdoor, the main goal is connecting you with your next-door neighbors.
As the name suggests, Nextdoor is useful for recommending items to your neighbors and posting about upcoming events, buying and selling to others in the neighborhood.
While Nextdoor hasn’t reached the likes of Facebook and Twitter in successes and popularity, it is modestly successful, having raised $470 million since its inception.
Nextdoor’s IPO is valued at around $5 billion and is a top investment opportunity to look out for next year.
The pandemic has almost killed off traditional physical dating, and the adoption of online dating apps and websites is at an all-time high.
Bumble is a hugely successful dating app founded by Tinder’s co-founder, Whitney Wolfe Herd in 2014, and has grown in leaps and bounds ever since.
Boasting 100 million users in 2020, Bumble has undoubtedly become a competitor to the insanely popular Tinder app.
Many sources reported that Bumble has already filed for an IPO and is pushing for an $8 billion valuation. However, spokespersons from the company have refused to drop comments about Bumble’s IPO plans.
Analysts believe that Bumble’s IPO should come around Valentine’s Day, which will make it the most romantic IPO of the year.
Given that many people are already accustomed to online dating apps, Bumble can only grow bigger, and investing in the app might be one of the best investment decisions of 2021.
IPOs are rewarding investments when gotten right. Getting the right IPO to invest in can seem a herculean task, as you’ll have to gather historical data about private companies that do not release their information to the public.
You don’t have to do that, as we have compiled the best IPO opportunities for 2021. From crypto exchange Coinbase to dating app Bumble, there are just so many rewarding or best IPOs to watch out for in 2021 and it is best to choose from any of them as soon as possible!