In 2024, the tech startup Initial Public Offering (IPO) market has been relatively quiet, with only a few U.S. tech unicorns entering the public sphere. While the biotech sector saw more activity, it still lagged behind previous highs. The aftermarket performance of these IPOs presents a mixed bag; some have significantly increased from their initial prices, others have plummeted, and many have remained stagnant. Despite this, a few companies stand out. This article analyzes the performances of venture-backed tech and biotech companies, focusing on large- and medium-sized IPOs.
Top Tech Performers
Among the larger tech offerings, Reddit has emerged as the standout performer of the year. The popular discussion platform’s shares are up 332%* since its IPO in March, resulting in a market capitalization of approximately $26 billion. Astera Labs follows, with its shares up 214% since debuting in March. The company, which provides AI and cloud connectivity technology, was recently valued around $18 billion. Other companies that have performed well include location-sharing app Life360, data security provider Rubrik, and delivery robot developer Serve Robotics.
Tech Underperformers
The tech IPOs that have underperformed include companies based outside the U.S. Webtoon Entertainment, a storytelling platform founded in Korea and headquartered in Los Angeles, has seen its shares lose about a third of their value since its June IPO. Gauzy, an Israeli manufacturer of liquid crystal controllers and films, has also struggled, with its shares losing roughly half their value after debuting in June. Denver-based Ibotta, a cashback app, is down about 17% from its initial offer price and is 34% off its all-time high.
Top Biotech Performers
Biotech companies that launched IPOs this year also experienced notable fluctuations. CG Oncology, which is developing a bladder cancer therapeutic, is a standout performer. Its stock soared in its first day of trading in January and has seen further gains following positive clinical trial results. As of this week, shares were up around 90% from the offer price. Ceribell, which develops electroencephalography technology for diagnosing and managing neurological conditions, has also performed strongly, with shares up 70% since its October IPO. Other companies that have shown significant gains include cancer therapeutics developer ArriVent BioPharma and drug discovery startup Septerna.
Biotech Underperformers
Other biotech companies have reported less positive post-IPO results. One of the worst performers is Metagenomi, a developer of novel genome editing tools that raised over $450 million in venture funding before going public in February. Since then, its shares have lost more than four-fifths of their value. FibroBiologics, a startup focused on regenerative medicine using fibroblasts, has also underperformed. Since its market debut via direct listing in January, at a reference price of $8, shares have lost over two-thirds of their value. Fractyl Health, which develops therapies for obesity and diabetes, is another laggard. Its shares have fallen more than 80% since its February debut under the ticker symbol GUTS.
Overall IPO Performance
Overall, more companies that went public this year are trading above their offering price than below it. According to IPOScoop.com, approximately 56% of the 168 companies that debuted on U.S. exchanges in 2024 are currently above their offer price. The total return is around 8%. While this may not sound too bad, the Nasdaq Composite Index, which is up about 35% for the year, would have yielded a better return.
* In calculating gain since IPO, we look at where the company priced its shares prior to initial trading.
