It was a rough year for fintech firms planning to go public in 2022. Market instability due to various economic and political factors, such as inflation, high-interest rates, and the disappointing performance of previous fintech IPOs, caused investors to hesitate.
As a result, companies such as Robinhood, and Coinbase, which went public in 2021, saw their stock prices decline significantly over the year. This decline has forced many fintech companies to put a brake on their IPO plans or cancel them altogether.
For Example, firms such as Klarna and Checkout.com publicly postponed their IPO due to deteriorating economic conditions. Yet, despite the challenges, there may still be hope for fintech firms looking to go public. Here is a list of fintech startups that could go public through an IPO in 2023
Arctic Wolf
Arctic Wolf is a security company that aims to help organizations manage and analyze their security events with its advanced platform. The platform can process over 2 trillion security events per week and utilizes machine learning and custom detection rules to provide personalized protection.
In July 2021, Arctic Wolf got over $150 million in Series F funding, increasing its valuation from $1.31 billion to over $4.3 billion. According to the CEO at the time, the IPO is likely the next step for the company.
Stripe
Stripe is a financial technology company that offers businesses a range of payment processing and financial infrastructure services. Patrick Collison founded the company in 2010 in San Francisco, California.
Stripe is around 13 years old and has processed over half a trillion dollars in transactions over the same period. According to Forbes, the fintech had over $11 billion in revenue post-Covid, forcing fintech to lower its valuation from $95 billion to the current $75 billion.
The company made its intentions known to trade publicly in mid-2021 but has yet to set a date. According to Industry leaders magazine, the company may IPO in 2023, given the right internal conditions.
Databricks
Databricks is a San Francisco-based company that provides tools and products to help companies view structured and unstructured data in a single location. In February 2021, the CEO of Databricks, Ali Ghodsi, mentioned the possibility of going public but still needs to provide a timeline.
The company ended 2021 with over $800 million in annual recurring revenue and a post-money valuation of $38 billion after completing a $1.6 billion Series H funding round in August 2021. This funding round came just seven months after the company raised $1 billion at a valuation of $28 billion. The company has hesitated on the IPO due to its high valuation, but it could consider an initial public offering in 2023.