Research Note: 1,035 IPOs, The 2021 Flotilla
A 2021 Capital Wave
Overview of a Typical IPO Year
In a typical year, the U.S. market sees between 150 to 200 Initial Public Offerings (IPOs). These IPOs collectively raise approximately $50 to $60 billion in capital. The distribution of IPOs across various industry sectors generally reflects the overall composition of the economy, with some bias towards high-growth sectors.
Technology usually leads the pack, accounting for about 25% of all IPOs. This is followed by Healthcare at 20%, which includes biotechnology and medical device companies. Financial Services typically represent about 15% of IPOs, while Consumer and Industrial sectors account for 12% and 10% respectively. The remaining 18% is distributed among Energy & Utilities, Real Estate, Materials, and Telecommunications sectors.
Analysis of 2021 IPO Activity
The year 2021 was extraordinary in terms of IPO activity, dramatically departing from typical patterns in both volume and distribution.
Volume: With 1,035 IPOs, 2021 saw more than five times the number of public offerings compared to a typical year. This unprecedented surge can be attributed to a combination of factors including pent-up demand from 2020, a bullish stock market, low interest rates, and the SPAC boom.
Capital Raised: The total capital raised in 2021 was approximately $275 billion, more than four times the amount in a typical year. This reflects not only the increased number of IPOs but also higher valuations and larger offering sizes.
Sector Distribution: While the general ranking of sectors remained similar to a typical year, there were notable shifts in the percentages:
Technology: The share of technology IPOs increased from 25% to 32%, underscoring the sector's growing dominance and the accelerated digital transformation driven by the pandemic.
Healthcare: Despite a slight decrease from 20% to 18%, healthcare remained a significant contributor, buoyed by increased focus on biotech and health technologies.
Financial Services: Maintained a relatively stable share, dropping slightly from 15% to 14%, with a notable increase in fintech companies going public.
Consumer and Industrials: Both sectors saw a decrease in their share of IPOs (Consumer from 12% to 8%, Industrials from 10% to 7%), possibly reflecting the pandemic's impact on these traditional sectors.
Other Sectors: Energy & Utilities, Real Estate, Materials, and Telecommunications all saw slight decreases in their share of IPOs, as investor focus shifted more heavily towards technology and healthcare.
SPAC Impact: A significant portion of the IPOs in 2021 were Special Purpose Acquisition Companies (SPACs), which are not reflected in the industry breakdown but contributed substantially to the overall IPO count.
Conclusion
The IPO market in 2021 was exceptional in every aspect – number of IPOs, capital raised, and sector distribution. The technology sector's increased dominance reflects the accelerated digital transformation across industries, while healthcare maintained its strong position amidst global health concerns.
The unprecedented activity in 2021 was driven by a unique combination of factors including recovery from the 2020 pandemic slowdown, abundant liquidity in the market, strong investor appetite for growth stocks, and the SPAC phenomenon. While this level of activity is unlikely to be sustained in the long term, it marks a significant milestone in IPO history and may influence IPO trends in the years to come.
As we move forward, it will be crucial to monitor how these newly public companies perform and whether the shift in sector distribution represents a long-term trend or a temporary phenomenon driven by extraordinary circumstances.
Software and Enterprise Solutions
UiPath Inc. (PATH) - Robotic process automation
Freshworks Inc. (FRSH) - Customer engagement software
GitLab Inc. (GTLB) - DevOps platform
monday.com Ltd. (MNDY) - Work management platform
HashiCorp, Inc. (HCP) - Cloud infrastructure automation
Fintech and Financial Services
Coinbase Global, Inc. (COIN) - Cryptocurrency exchange
Marqeta, Inc. (MQ) - Card issuing platform
Robinhood Markets, Inc. (HOOD) - Financial services platform
Nu Holdings Ltd. (NU) - Digital banking platform
E-commerce and Consumer Internet
Squarespace, Inc. (SQSP) - Website building platform
AppLovin Corporation (APP) - Mobile app monetization platform
Education Technology
Duolingo, Inc. (DUOL) - Language learning platform
Udemy, Inc. (UDMY) - Online learning platform
Transportation and Logistics
TuSimple Holdings, Inc. (TSP) - Autonomous trucking technology
Rivian Automotive, Inc. (RIVN) - Electric vehicle manufacturer
Gaming and Entertainment
Roblox Corporation (RBLX) - Gaming platform
Job Market and Professional Networks
ZipRecruiter, Inc. (ZIP) - Online employment marketplace
Doximity, Inc. (DOCS) - Professional network for medical professionals
Cloud Services and Infrastructure
Backblaze, Inc. (BLZE) - Cloud storage and backup
GlobalFoundries Inc. (GFS) - Semiconductor manufacturing
Cybersecurity
SentinelOne, Inc. (S) - Cybersecurity platform
Restaurant Technology
Toast, Inc. (TOST) - Restaurant management platform
Internet of Things (IoT)
Samsara Inc. (IOT) - IoT and cloud platform
Marketing Technology
Braze, Inc. (BRZE) - Customer engagement platform
2021 : 1035 IPOs
Technology & Software
Roblox Corporation (RBLX)
UiPath Inc. (PATH)
Coinbase Global, Inc. (COIN)
AppLovin Corporation (APP)
Squarespace, Inc. (SQSP)
ZipRecruiter, Inc. (ZIP)
Marqeta, Inc. (MQ)
monday.com Ltd. (MNDY)
Duolingo, Inc. (DUOL)
Robinhood Markets, Inc. (HOOD)
Toast, Inc. (TOST)
Freshworks Inc. (FRSH)
GitLab Inc. (GTLB)
GlobalFoundries Inc. (GFS)
Udemy, Inc. (UDMY)
Amplitude, Inc. (AMPL)
Couchbase, Inc. (BASE)
DigitalOcean Holdings, Inc. (DOCN)
Confluent, Inc. (CFLT)
Informatica Inc. (INFA)
Qualtrics International Inc. (XM)
Playtika Holding Corp. (PLTK)
Bumble Inc. (BMBL)
Coursera, Inc. (COUR)
SentinelOne, Inc. (S)
KnowBe4, Inc. (KNBE)
Alkami Technology, Inc. (ALKT)
ForgeRock, Inc. (FORG)
Kaltura, Inc. (KLTR)
Paycor HCM, Inc. (PYCR)
PowerSchool Holdings, Inc. (PWSC)
CS Disco, Inc. (LAW)
WalkMe Ltd. (WKME)
Doximity, Inc. (DOCS)
Sprinklr, Inc. (CXM)
Intapp, Inc. (INTA)
Weave Communications, Inc. (WEAV)
Expensify, Inc. (EXFY)
HashiCorp, Inc. (HCP)
Samsara Inc. (IOT)
Nu Holdings Ltd. (NU)
UserTesting, Inc. (USER)
Backblaze, Inc. (BLZE)
Thoughtworks Holding, Inc. (TWKS)
IronSource Ltd. (IS)
SimilarWeb Ltd. (SMWB)
Cvent Holding Corp. (CVT)
Riskified Ltd. (RSKD)
Procore Technologies, Inc. (PCOR)
Zymergen Inc. (ZY)
Healthcare & Biotech
Signify Health, Inc. (SGFY)
Sana Biotechnology, Inc. (SANA)
Bioventus Inc. (BVS)
Prometheus Biosciences, Inc. (RXDX)
Longboard Pharmaceuticals, Inc. (LBPH)
Instil Bio, Inc. (TIL)
Recursion Pharmaceuticals, Inc. (RXRX)
Lyell Immunopharma, Inc. (LYEL)
Evelo Biosciences, Inc. (EVLO)
Vera Therapeutics, Inc. (VERA)
Tenaya Therapeutics, Inc. (TNYA)
Singular Genomics Systems, Inc. (OMIC)
Sight Sciences, Inc. (SGHT)
Erasca, Inc. (ERAS)
Icosavax, Inc. (ICVX)
Absci Corporation (ABSI)
Rani Therapeutics Holdings, Inc. (RANI)
Immuneering Corporation (IMRX)
Omega Therapeutics, Inc. (OMGA)
Caribou Biosciences, Inc. (CRBU)
Rallybio Corporation (RLYB)
Xilio Therapeutics, Inc. (XLO)
Candel Therapeutics, Inc. (CADL)
IN8bio, Inc. (INAB)
PROCEPT BioRobotics Corporation (PRCT)
Tyra Biosciences, Inc. (TYRA)
Theseus Pharmaceuticals, Inc. (THRX)
Entrada Therapeutics, Inc. (TRDA)
Aura Biosciences, Inc. (AURA)
Vaxxinity, Inc. (VAXX)
Fintech
Affirm Holdings, Inc. (AFRM)
SoFi Technologies, Inc. (SOFI)
Blend Labs, Inc. (BLND)
Flywire Corporation (FLYW)
dLocal Limited (DLO)
Paymentus Holdings, Inc. (PAY)
Remitly Global, Inc. (RELY)
AvidXchange Holdings, Inc. (AVDX)
Integral Ad Science Holding Corp. (IAS)
Clearwater Analytics Holdings, Inc. (CWAN)
Alkami Technology, Inc. (ALKT)
Marqeta, Inc. (MQ)
Robinhood Markets, Inc. (HOOD)
Coinbase Global, Inc. (COIN)
Consumer Goods & Services
Oatly Group AB (OTLY)
The Honest Company, Inc. (HNST)
Rent the Runway, Inc. (RENT)
Allbirds, Inc. (BIRD)
Warby Parker Inc. (WRBY)
Chewy, Inc. (CHWY)
Petco Health and Wellness Company, Inc. (WOOF)
Torrid Holdings Inc. (CURV)
European Wax Center, Inc. (EWCZ)
Traeger, Inc. (COOK)
The Vita Coco Company, Inc. (COCO)
Solo Brands, Inc. (DTC)
On Holding AG (ONON)
Brilliant Earth Group, Inc. (BRLT)
a.k.a. Brands Holding Corp. (AKA)
FIGS, Inc. (FIGS)
Lulu's Fashion Lounge Holdings, Inc. (LVLU)
Real Estate & Property Tech
Compass, Inc. (COMP)
Offerpad Solutions Inc. (OPAD)
WeWork Inc. (WE)
Opendoor Technologies Inc. (OPEN)
Zillow Group, Inc. (Z)
Matterport, Inc. (MTTR)
Doma Holdings, Inc. (DOMA)
Electric Vehicles & Transportation
Rivian Automotive, Inc. (RIVN)
TuSimple Holdings, Inc. (TSP)
Frontier Group Holdings, Inc. (ULCC)
Joby Aviation, Inc. (JOBY)
Archer Aviation Inc. (ACHR)
EVgo, Inc. (EVGO)
E-commerce & Retail
ThredUp Inc. (TDUP)
Poshmark, Inc. (POSH)
Wish (ContextLogic Inc.) (WISH)
The RealReal, Inc. (REAL)
1stdibs.com, Inc. (DIBS)
Energy & Utilities
Shoals Technologies Group, Inc. (SHLS)
Enovix Corporation (ENVX)
Stem, Inc. (STEM)
Array Technologies, Inc. (ARRY)
Fluence Energy, Inc. (FLNC)
Food & Beverage
Krispy Kreme, Inc. (DNUT)
Dutch Bros Inc. (BROS)
Sweetgreen, Inc. (SG)
Zevia PBC (ZVIA)
Oatly Group AB (OTLY)
Gaming & Entertainment
Roblox Corporation (RBLX)
Applovin Corporation (APP)
Playtika Holding Corp. (PLTK)
Sportradar Group AG (SRAD)
Endeavor Group Holdings, Inc. (EDR)
Cybersecurity
SentinelOne, Inc. (S)
KnowBe4, Inc. (KNBE)
ForgeRock, Inc. (FORG)
IronNet, Inc. (IRNT)
Cryptocurrency & Blockchain
Coinbase Global, Inc. (COIN)
Bakkt Holdings, Inc. (BKKT)
Stronghold Digital Mining, Inc. (SDIG)
Education Technology
Coursera, Inc. (COUR)
Udemy, Inc. (UDMY)
Duolingo, Inc. (DUOL)
PowerSchool Holdings, Inc. (PWSC)
Insurance
Oscar Health, Inc. (OSCR)
Metromile, Inc. (MILE)
Hippo Holdings Inc. (HIPO)
Lemonade, Inc. (LMND)
Note: This list aims to be comprehensive but may not be exhaustive. Some companies may fit into multiple categories but are listed in the category that best represents their primary business focus.