Startup IPOs: Spotlight on 2023’s Biggest Winners and Losers!

Let’s be real: 2024 has been a bit of a snooze fest in the tech startup IPO world.

This year, only a handful of U.S. tech unicorns have taken the plunge into the public market. While biotech offerings are slightly more common, they’re still lagging behind previous highs.

As for how these stocks are faring after their debut? The story isn’t exactly riveting. Some are soaring, others are plummeting, and many are just treading water.

But don’t count out the excitement just yet! We’ve sifted through the numbers to highlight the standouts among venture-backed tech and biotech companies, focusing on those larger and medium-sized IPOs that have captured our attention.

Top Tech Performers

Leading the charge in larger tech IPOs this year is none other than Reddit. The beloved discussion platform has seen its shares skyrocket by an astounding 332% since its IPO in March, landing a market cap of around $26 billion!

Following closely behind is Astera Labs, with shares soaring by 214% since its March debut. This player in AI and cloud connectivity technology has recently been valued at about $18 billion.

Other notable performers include the location-sharing sensation Life360, data security innovator Rubrik, and the cutting-edge delivery robot pioneer Serve Robotics.

Tech Underperformers

Sadly, some IPOs just didn’t hit the mark, particularly for companies based outside the U.S.

A case in point is Webtoon Entertainment, a storytelling platform founded in Korea and headquartered in Los Angeles. Since pricing its IPO in June, its shares have plummeted by about a third.

Gauzy, an Israeli company specializing in liquid crystal controllers and films, has also struggled, losing nearly half its value since its June debut.

Meanwhile, Denver-based Ibotta, known for its cashback shopping app, is down approximately 17% from its offer price and a staggering 34% from its all-time high.

Top Biotech Performers

The biotech scene is equally mixed, with companies experiencing their own rollercoaster of IPO outcomes.

Leading the biotech pack is CG Oncology, which is developing a groundbreaking therapy for bladder cancer. After a stellar opening in January, its stock has climbed further on the heels of promising clinical trial results, now sitting about 90% higher than its initial offer price.

Another strong player is Ceribell, a pioneer in electroencephalography technology for serious neurological conditions; its shares are up 70% since its October IPO.

Other rising stars include cancer therapeutics innovator ArriVent BioPharma and drug discovery trailblazer Septerna.

Biotech Underperformers

On the flip side, some biotech firms are feeling the heat after their market debut.

One of the biggest disappointments is Metagenomi, which raised over $450 million in venture funding before going public in February. Since then, its shares have tumbled by more than 80%—yikes!

FibroBiologics, a startup focused on using fibroblast cells for regenerative medicine, has also seen a rough ride. Since its January direct listing at a reference price of $8, shares have plummeted by over two-thirds.

Likewise, Fractyl Health, dedicated to tackling obesity and diabetes at their roots, has faced a staggering decline of more than 80% since launching in February.

Overall, IPOs Are Up but Underperforming Major Indexes

Despite the ups and downs, more companies that went public this year are currently trading above their initial offer price than below.

Out of 168 companies that made their debut on U.S. exchanges in 2024, approximately 56% are trading above their offer price, according to industry reports. Collectively, these IPOs have yielded an average return of around 8%.

That sounds decent, right? But hold on—investing in the Nasdaq Composite Index would have netted you a much sweeter return of around 35% this year.

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Illustration: Dom Guzman

* In calculating gains since IPO, we focus on where the company priced its shares ahead of initial trading.