The momentum in the equity capital markets is partly attributed to expectations of a business-friendly regulatory environment under the new presidential administration, which could positively impact profits and valuations. Additionally, lower interest rates may stimulate activity on lending platforms like Upstart. Despite this optimism, some of America’s largest startups, including Databricks, SpaceX, and OpenAI, are raising significant capital in private markets to delay their IPOs. As major banks prepare to release their earnings, investors will be closely watching their forecasts for capital markets, following last year's surge in activity.
Key takeaways:
- Investment bankers are optimistic about an increase in equity capital market activity, driven by high-profile IPOs from companies like Venture Global, Medline, and Sailpoint.
- Private equity firms are becoming more active in taking companies public, despite challenges from high interest rates and market conditions in recent years.
- FinTech companies such as Klarna, CoreWeave, and Chime are potential candidates for IPOs, with Chime having already submitted paperwork confidentially.
- Some large startups, like Databricks, SpaceX, and OpenAI, are raising significant capital in private markets to delay their IPOs.