The U.S. IPO market is poised to produce a very big year for investors, issuers and Wall Street alike. While we are off to a relatively slow start, expect to see a wave of deals hitting the calendar in coming months.
IPO players are looking to the Technology Sector to drive the next wave of activity. With the JOBS Act, the true IPO Pipeline remains shrouded in mystery, but based upon public discussions with bankers and growing private market valuations, we can expect a flurry of technology IPOs to begin hitting the calendar over the next few months.
Here is an abridged list of the most prominent Technology firms that are rumored to bring a public offering sometime in 2014.
· AirBnB - Manages an online hospitality community which allows individuals to rent out spare rooms, couches, treehouses and more.
· Alibaba Group - One of the world's largest e-commerce players, managing B2B web portals, payment services, and cloud-computing services amongst other businesses.
· Box - Online file sharing and cloud content management service focused on the enterprise market.
· Dropbox - File hosting service which offers cloud storage and file synchronization - aimed initially at consumers, but expanding to enterprise market.
· Eventbrite - Online ticketing service that allows event organizers to plan, manage and promote ticket sales.
· Evernote - Offers a family of software products designed to help people organize projects, ideas and memories.
· Gilt Groupe - Operates an online shopping site offering flash sales of designer apparel to members at significant discounts from retail price.
· GoPro - Maker of High definition compact video cameras aimed at athletes and extreme sports.
· Jawbone - Technology company that develops wearable technology and portable audio devices.
· Pinterest - Visual discovery tool which uses social bookmarking to allow users the ability to collect and share ideas for projects and interests.
· Snapchat - Photo messaging application which allows users to take and share temporary photos, videos, texts and drawings.
· Space Exploration Technologies (SpaceX) - Space transport services company which delivers cargo and (eventually) humans to international space stations.
· Spotify - Commercial music streaming service providing digital rights management-restricted content from many of the largest record labels.
· Square - Mobile payment company that allows individuals and merchants to accept offline debit and credit cards through smartphones and tablets.
· Survey Monkey - Cloud based web survey company which allows users to create and publish online surveys.
· Uber - Transportation network connecting passengers with drivers for hire and ride-sharing services.
In addition to rumored IPO candidates, there is a growing list of tech firms that have publicly filed and are actively preparing for an IPO.
Here are the firms expected to hit the calendar in the next several months:
· Aerohive Networks - Cloud-managed mobile networking platform that enables enterprises to deploy a mobile-centric network edge.
· Amber Road - Provider of cloud-based global trade management solutions focused on providing import/export automation software.
· Borderfree - Crossborder e-commerce company allowing business to transact with consumers in more than 100 countries.
· Five9 - Provides software for cloud-based contact centers to replace legacy on-premise call center systems.
· King Digital - Leading interactive mobile game maker known for the Candy Crush Saga. The firm boasts 128 million daily active users, playing 1.2 billion times per day.
· Opower - Offers software to analyze energy data and provide insights to consumers to motivate reductions in energy consumption.
· Q2 Holdings - Virtual banking solution enabling regional and community financial institutions to deliver integrated banking services to their customers.
· The Rubicon Project - Provides advertising automation software designed to optimize the process of buying and selling ads.
· 2U inc. - Provider of cloud-based software-as-a-service for nonprofit colleges and universities to deliver education content online.
This next crop of tech companies are sure to present significant opportunity at the right price. Expect the strongest contestants to be first to market with their offerings and watch carefully because their performance will set the tone for the next wave of IPO activity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.