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Pre IPO companies from the US

Private equity companies from Silicon Valley and New York with the most potential to grow

Pre-IPO market attracts more and more attention as private equity firms show eye-watering returns and gain unbillable valuations. In this pick of top pre-IPOs, you won’t find overhyped companies with great media coverage. Analysts from Raison App have picked the most promising companies with exceptional technologies and the most promising future.

The US has produced almost half (48,5%) of all unicorns in the world, thanks to Silicon Valley and developed culture of venture investments. Therefore, it was quite hard to pick 3 interesting companies from different industries.

Digital Ocean

DigitalOcean is a cloud computing platform that deploys, manages, and scales applications of any size. Its infrastructure and platform-as-a-service solutions provide a no DevOps required experience, allowing developers to focus their energy on creating innovative software. The company is presented in ‘The Cloud 100’ by Forbes.

DigitalOcean is successfully enticing clients from Amazon Web Services and Microsoft Azure. The company offers a high-quality platform for the creation of web infrastructures, that easier and more cost-efficient than AWS or Azure. With data centres across the globe (US, Canada, Europe, India, Singapore), the cloud platform offers fast and secure access for developers.

Before the last funding round in 2020, Digital ocean announced $300 million in Annual Accuring Revenue, which has increased by 20% since 2019. According to the CEO, the company is planning to achieve positive cash flow in a few years, which will put DigitalOcean in a good position for IPO.

Total funding of DigitalOcean, Crunchbase, 2021

The last funding round provided the company with an additional $50 million cash, with a $1,15 billion valuation. The capital is used to scale the business around the world, as the company see higher demand in cloud hosting from SMBs due to pandemic.

Blend Labs

Blend is a digital lending platform that supports and simplifies applications for mortgages, consumer loans, and deposit accounts. Its Digital Lending Platform is utilized by Wells Fargo, U.S. Bank, and over 285 other leading financial institutions to acquire more customers, increase productivity, and deepen customer relationships. The company enables customers to process more than $1,4 billion in mortgages and consumer loans in 2020.

Blend operates in the US $15 trillion consumer lending market. It is a dynamically growing niche supported by low-interest rates. The need to transform the banking industry has been forming for many years, but COVID-19 have launched this process, and now it will only accelerate. The Blend platform process almost 30% of all mortgage applications in the United States.

Round F for $ 300 million was closed on January 13, 2021, and increased the company’s valuation more than 2 times — up to $ 3.3 billion. The purpose of the round is to finance the development of products like car loans and consumer loans. Further growth for Blend will be driven by growth in consumer lending, expansion into other niches, cross-selling to existing customers and expansion into international markets.

Total funding of Bend Labs, Crunchbase, 2021

The lending market in the US is very promising. The example of PayPal (NASDAQ: PYPL) stock, which has grown by 23% YTD, brought the company’s market capitalization to $ 334 billion. Blend’s share price has shown a 51,74% annual average return for investors.

Tradeshift

Tradeshift is a could based platform for supply chain payments for business. Led by Goldman Sachs and the Canadian Pension Fund (PSP) the company was founded in Denmark in 2009 and after three years moved to California. The company’s platform allows its clients to connect with all their suppliers digitally, seize early payment discounts and minimize risks eliminating paper and manual processes across procure-to-pay, thereby allowing businesses to simplify supply chain payments securely.

More than 1.5 million companies across 190 countries trust Tradeshift to process over half a trillion USD in transaction value, making it the largest global business network for buying and selling supplies. In 2020, Tradeshift has shown $100 million revenue, which 60% higher than a year before. A lot of the revenue comes from key customers, which are 150 companies from the 500 Fortune list.

According to the company, 95% of Danish business still uses Tradeshift for the supply chain management. The main rival is also a California-based company — Coupa. It is a publicly-traded company with a $22 billion capitalisation, which makes a great threshold for growth.

Total funding of Tradeshift, Crunchbase, 2021

Moreover, the company signals about plans to IPO. First of all, the CEO, Christian Lanng said that after achieving positive cash flow in 2020, a company will be one step closer to go public. Secondly, the attraction of top-managers that have a lot of experience in IPO is also a big sign that Tradeshift is taking the idea of going public very seriously. For investors that means two things: active valuation growth and fast exit strategy. Available

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Raison App democratises the private equity market! Our marketplace gives access to retail investors to purchase units tied to large-cap private companies like SpaceX,Airbnb, Robinhood, Klarna and many more.

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Petr Vysotskiy

Petr Vysotskiy

Blockchain, economics and politics enthusiast.

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