MKM Offers Its Predictions for Top IPOs of 2021

MKM Executive Director, Rohit Kulkarni, highlighted his list of top IPO Candidates that could attract capital from large industry veterans. While 2020 has been another record year for IPOs, the median age of companies going public has increased as well driving valuations higher. Amazon (NASDAQ: AMZN) went public when it was 35 months old; Alphabet (NASDAQ: GOOG) went public when it was ~72 months old; Facebook (NASDAQ: FB) and Twitter (NYSE: TWTR) were both ~95 months
old when they went public; Uber (NYSE: UBER) and Slack (NYSE: WORK) were both 10+ years old when they went public, while Airbnb (NASDAQ: ABNB) and Palantir (NYSE: PLTR) were clear teenagers.

Last year, six of the 20 IPO candidates went public and two were acquired: Airbnb (ABNB), DoorDash (NYSE: DASH), Palantir (PLTR), Snowflake (NYSE: SNOW), Unity Software Inc. (NYSE: U), and ContextLogic (NASDAQ: WISH); plus, Uber acquired Postmates, while Coinbase and Instacart filed to go public.

For 2021, the analyst's crystal ball shows the following companies coming out:
Affirm (Fintech/Payments)
Automattic (website development/eCommerce enabler)
Avant (Artificial Intelligence)
Coinbase (Fintech/Crypto)
Compass (real estate tech/brokerage)
Databricks (Saas/Data Management)
Fanatics (Ecommerce/Online Retail)
Houzz (E-commerce/Marketplace)
Instacart (E-commerce/Food & Grocery Delivery)
Marqeta (Fintech/Payments)
Nextdoor (Social/Mobile/Local advertising)
Niantic (Mobile/Video Games)
Oscar Health (e-Health/digital healthcare)
Poshmark (E-commerce/Marketplace)
Robinhood (Fintech/Crypto Exchange)
Roblox (Mobile/Video games)
SoFi (Fintech/Online Lending)
Stripe (Fintech/Payments)
Tanium (SaaS/Security Software)
UI Path (SaaS/Robotic Process Automation)

MKM also sees 2021 being another record year for IPOs with MKM’s Economist, Michael Darda, seeing "strong, above-trend growth for full-year 2021 as vaccines and better therapeutics bootstrap re-opening efforts. Darda expects the output, jobs, and compensation “gaps” that opened up during the 2020 COVID shock to fully reverse by year-end".

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