Israeli tech flotations seen reviving in 2025

U.S. software company ServiceTitan (Nasdaq: TTAN) went public on the Nasdaq earlier this month, and its stock has since soared 41%, pushing its market capitalization to $9 billion. It turns out that one successful flotation operation is enough to restore vibrancy and optimism to the primary technology market around the world and in Israel.

A new study by Poarim Tech and research firm Maydata reinforces predictions that 2025 will be a year of transition. The survey, conducted among dozens of venture capital investors and major investment banks, found that at least five Israeli companies are expected to IPO next year. “ServiceTitan’s success has been extraordinary, especially considering it is a software service rather than a heavy technology,” said Greenfield Partners partner Raz Mangel. The fact that the company beat its price target “suggests a return to investor confidence,” he said.

This is not the only impressive success in the global IPO market over the past year. Media platform Reddit (NYSE:RDDT) went public in March and has since soared 253%, reaching a market cap of $30 billion. Astera Labs (NASDAQ: ALAB), the semiconductor company whose founder is Israeli entrepreneur Avigdor Wilentz, has also risen 150% since its IPO in March, giving it a market cap of $20 billion. “There have been about 35 substantial technology IPOs this year,” says Aurel Levy, managing partner at ANEK Capital, a hedge fund specializing in small and medium-sized technology companies. There were 15 IPOs in software alone.

A major flotation is planned for 2025 for companies like fintech giant Stripe. There is also a clear resurgence in Europe. Swedish fintech startup Klarna has announced its intention to IPO next year, and digital bank Revolut is also considering an IPO to enter the US market.

A natural path to the stock exchange

Market watchers say Israeli technology companies typically take an average of six funding rounds to emerge, sometimes over a decade. Over the past year, several Israeli companies have been identified as potential candidates for an upcoming IPO. VAST dataa developer of advanced data storage solutions, is valued at $9.1 billion. dealprovides solutions for global payroll management. and fintech companies Rapideis expected to IPO at a valuation of at least $10 billion. light trixKnown for its photo and video editing applications, sending securitya developer of information security and identity verification solutions, is also on the list.

trading platform Etrohas hired the services of investment bank Goldman Sachs to lead its IPO in the United States. The company’s valuation is expected to be $5 billion. During the primary market boom, eToro took steps to go public through a SPAC merger at a valuation of $10.4 billion (later revised to $8.8 billion). In the end, the move was cancelled.

cyber security company Kato Networks has appointed a banking team consisting of Barclays, JP Morgan and Goldman Sachs for its New York IPO. Navan The company (formerly TripActions), which develops a platform for managing travel and expenses, is expected to IPO at a valuation of $8 billion to $10 billion. fast delivery company gopuffwas founded by American and Israeli entrepreneurs and plans an IPO at a valuation of $10 billion to $15 billion.

Companies with long-term IPO plans LendbuzzIt offers vehicle purchase financing and is considering an IPO in late 2025 or early 2026. viais a developer of software systems for transportation services and is considering an IPO at the end of 2025 at a valuation of $2 billion.

Published by Globes, Israel Business News – en.globes.co.il – on December 26, 2024.

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