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- According to a new report from CB Insights out Wednesday, 23 tech startups are hoping to go public in 2020 via a traditional IPO or direct listing.
- Popular tech companies like Airbnb, Credit Karma, and DoorDash are joined by several enterprise software companies such as Tanium, Snowflake, and Databricks.
- Tiger Global Management and Sequoia Capital are among the Silicon Valley venture firms poised to make a tidy return in 2020 by backing some of the decade's biggest hits in the earliest stages.
- Most of the startups hoping to go public raised significant venture funding in 2019, and have been fundraising since 2011. Many investors have credited the poor performance of recent IPOs in companies like Uber and Lyft to staying private longer and taking on too much venture capital in the lead up to the public offering.
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Even though 2019 ultimately did not become the IPO windfall many insiders hoped, that hasn't stopped the parade of startups from marching along to Wall Street in 2020.
According to a new report from CB Insights released Wednesday, at least 23 startups are hoping to go public via traditional IPO or direct listing in 2020. The pipeline includes popular hits such as home rental startup Airbnb, financial management tool Credit Karma, and on-demand food delivery app DoorDash.
But among the long list of public hopefuls are several enterprise software startups that have been happily chugging along behind the more notorious consumer companies that have led 2019's disappointing IPO window. There's security software company Tanium, perhaps best known to industry outsiders for its engineers that consulted on hacker TV series "Mr. Robot." There is also Databricks and Snowflake in the data warehousing realm and website creation tool Squarespace.
If even a handful of the companies go public in 2020, however, the biggest winners may not be the founders or early employees, a relief for those feeling the housing crunch and skyrocketing cost of living in the San Francisco Bay Area. Instead, returns will most likely go down the peninsula to the Sand Hill Road offices of Sequoia Capital and Tiger Global Management.
Both firms are poised to make the heftiest returns if and when the current pipeline of startups go public, according to the report. The two have made significant bets across enterprise and consumer startups and have a habit of getting in on the earliest funding rounds for some of the hottest companies. Sequoia, for example, backed gaming engine Unity, a top prospect for a 2020 public offering.
Other Silicon Valley institutions Andreessen Horowitz, Accel, and GV (formerly Google Ventures) round out the top five venture firms ready to cash in on the 2020 IPO parade.
Here are the 23 startups hoping to go public in 2020.
Asana
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What it is: Asana creates project management software for on-site and distributed teams.
Founded: 2008 by Justin Rosenstein and Dustin Moskowitz
Total funding: $213.51 million
Investors: SV Angel, Andreessen Horowitz, Benchmark, Founders Fund, Mark Zuckerberg, Peter Thiel, Kapor Capital, Y Combinator
Most recent funding round: Asana raised $50 million in its Series E led by Generation Investment Management on November 29, 2018, that valued the startup at $1.5 billion.
Airbnb
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What it is: Airbnb operates a property rental website that allows users to rent and lease everything from treehouses and mansions to spare bedrooms and Airstream trailers.
Founded: 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia
Total funding: $4.4 billion
Investors: Y Combinator, Sequoia Capital, SV Angel, General Catalyst, Andreessen Horowitz, DST Global, Founders Fund, Tiger Global Management, Kleiner Perkins, FirstMark Capital
Most recent funding round: Airbnb raised $1 billion in its Series F on September 2, 2017. CapitalG and Technology Crossover Ventures led the round, which valued Airbnb at $31 billion.
Unity
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What it is: Unity created real-time 3-D development software for app and gaming developers.
Founded: 2004 by Joachim Ante and David Helgason
Total funding: $1.22 billion
Investors: Sequoia Capital, London Venture Partners, D1 Capital Partners, WestSummit Capital, iGlobe Partners, Thrive Capital, DFJ Growth, Oceanic Ventures, Breakaway Growth Fund
Most recent funding round: Unity raised $150 million in its Series E on May 6, 2019, but was reportedly looking to raise an additional $525 million in undisclosed funding as of July 25.
Snowflake
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What it is: Snowflake is an enterprise-level software startup that provides data warehousing and analytics.
Founded: 2012 by Marcin Zukowski, Thierry Cruanes, and Benoit Dageville
Total funding: $922.95 million
Investors: Sutter Hill Ventures, Wing Venture Capital, Redpoint Ventures, Altimeter Capital Management, Sequoia Capital, Meritech Capital Partners, Human Capital
Most recent funding round: Snowflake completed a $450 million Series F led by Sequoia Capital on October 11, 2018. The round valued Snowflake at $3.5 billion.
GitLab
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What it is: GitLab is a developer tool that offers an open-source code collaboration software.
Founded: 2014 by Sid Sijbrandij and Dmitriy Zaporozhets
Total funding: $413.82 million
Investors: Y Combinator, Sound Ventures, Tuesday Capital, Khosla Ventures, 500 Startups, August Capital, Telstra Ventures, GV, Capital Factory, Tiger Global Management, General Catalyst
Most recent funding round: GitLab raised $268 million in Series E funding led by ICONIQ Capital and The Goldman Sachs Group on September 17, 2019, which valued the company at $2.75 billion.
Credit Karma
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What it is: Credit Karma offers a suite of financial management tools, including credit card recommendations, free credit score monitoring, and tax preparation.
Founded: 2007 by Kenneth Lin, Ryan Graciano, and Nichole Mustard
Total funding: $645.27 million
Investors: SV Angel, Founders Fund, Felicis Ventures, Ribbit Capital, Tiger Global Management, 500 Startups, CapitalG, Archer Venture Capital
Most recent funding round: Credit Karma raised $175 million of Series D funding from Tiger Global Management, Valinor Management, and Susquehanna Growth Equity on June 23, 2015, and has since completed two rounds of debt financing and secondary sales.
Squarespace
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What it is: Squarespace is a website creation and content management software creator.
Founded: 2003 by Anthony Casalena
Total funding: $278.55 million
Investors: Index Ventures, Accel, Man Capital, General Atlantic, The State of Maryland
Most recent funding round: Squarespace received $200 million in growth funding from General Atlantic on December 19, 2017, that valued the company at $1.7 billion.
Roblox
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What it is: Roblox is a virtual reality startup that creates games and experiences for students and adults learning computer science.
Founded: 2004 by David Baszucki
Total funding: $185.76 million
Investors: Kleiner Perkins, First Round Capital, Altos Ventures, Meritech Capital Partners, Index Ventures, Tiger Global Management, Greylock Partners, Greenspring Associates
Most recent funding round: Roblox raised $150 million in its Series F led by Greylock Partners and Tiger Global Management on June 5, 2018, that valued the startup at $2.4 billion.
Databricks
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What it is: Databricks is a data analytics startup for large enterprises.
Founded: 2013 by Ali Ghodsi, Reynold Xin, Matei Zaharia, Patrick Wendell, Andy Konwinski, and Ion Stoica
Total funding: $897.36 million
Investors: Andreessen Horowitz, NEA, Data Collective, SineWave Ventures, B7, Green Bay Ventures, Battery Ventures, A.Capital Ventures, Tiger Global Management, Coatue Management
Most recent funding round: Databricks raised $400 million in its Series F that valued the startup at $6.2 billion led by Andreessen Horowitz's growth fund on October 22, 2019.
Freshworks
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What it is: Freshworks makes customer service software for large and medium companies.
Founded: 2010 by Girish Mathrubootham and Shanmugam Krishnasamy
Total funding: $401.1 million
Investors: Accel, Tiger Global Management, YourStory Media, CapitalG, Sequoia Capital India
Most recent funding round: Freshworks closed a $150 million Series H from CapitalG, Sequoia Capital India and Accel on November 4, 2019, that valued the startup at $3.5 billion.
Wish
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What it is: Wish is a direct-to-consumer e-commerce mobile app.
Founded: 2010 by Danny Zhang and Peter Szulczewski
Total funding: $1.8 billion
Investors: SV Angels, Formation 8, Felicis Ventures, CRV, GGV Capital, Third Point Ventures, Legend Capital, Founders Fund, FJ Labs, DST Global, IDG Capital, 8VC, Caffeinated Capital
Most recent funding round: The startup closed $300 million in Series H funding from General Atlantic on August 1, 2019, that valued it at $11.2 billion.
Blend
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What it is: Blend is a financial lending website that uses machine learning to track fraud and assess a user's creditworthiness.
Founded: 2012 by Nima Ghamsari, Eugene Marinelli, and Erin Collard
Total funding: $314.08 million
Investors: Thrive Capital, Lightspeed Venture Partners, Formation 8, Conversion Capital, Andreessen Horowitz, Founders Fund, Greylock Partners, Emergence Venture Partners, Fifth Wall
Most recent funding round: The company raised $130 million in its Series E led by General Atlantic and Temasek Holdings on June 24, 2019.
DoorDash
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What it is: DoorDash is one of several on-demand food delivery apps.
Founded: 2013 by Tony Xu, Andy Fang, and Stanley Tang
Total funding: $2.07 billion
Investors: Y Combinator, Khosla Ventures, CRV, Benchmark, Sequoia Capital, Kleiner Perkins, Cota Capital, SoftBank Investment Advisors, DST Global, Sands Capital Ventures
Most recent funding round: DoorDash closed a $700 million Series G on November 13, 2019. The round was led by Sands Capital Ventures and Darsana Capital Partners and valued the company at $13 billion.
Procore
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What it is: Procore is a project management software tool for on-site management in industries like real estate and construction.
Founded: 2003 by Craig Courtemanche
Total funding: $490 million
Investors: Lumia Capital, Lead Edge Capital, Greater Pacific Capital, TenOneTen Ventures, Bessemer Venture Partners, Tiger Global Management, Persistence Partners
Most recent funding round: Procore closed $103.5 million in Series H1 funding from undisclosed investors on July 30, 2019, valuing the startup at $3.3 billion.
AvidXChange
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What it is: AvidXchange provides accounting software for accounts payable and invoicing.
Founded: 2000 by David Miller and Michael Praeger
Total funding: $490 million
Investors: QED Ventures, Nyca Partners, Foundry Group, Bain Capital Ventures, Pivot Investment Partners, Peter Thiel
Most recent funding round: The 19-year-old startup raised $150 million on October 14, 2019, from undisclosed investors in a round valuing the company at $2 billion.
Fanatics
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What it is: Fanatics is an e-commerce sports memorabilia retailer.
Founded: 1995 by Alan Trager
Total funding: $1.62 billion
Investors: Andreessen Horowitz, Temasek Holdings, Alibaba Capital Partners, SoftBank Investment Advisors, Silver Lake Management, NFL, MLB
Most recent funding round: Fanatics completed $500 million in debt refinancing on April 24, 2019. Deutsche Bank, Bank Of America, SunTrust Bank, Barclays, PNC Bank, Goldman Sachs, Citigroup, HSBC Financial and Mizuho Bank provided the revolving line of credit.
ServiceTitan
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What it is: ServiceTitan provides cloud software for residential services such as housecleaning or repairs.
Founded: 2012 by Ara Mahdessian and Vahe Kuzoyan
Total funding: $325.96 million
Investors: Mucker Capital, I2BF Global Ventures, Bessemer Venture Partners, Hive Ventures, Battery Ventures, Index Ventures, Dragoneer Investment Group
Most recent funding round: Index Ventures led the startup's $165 million Series D on November 14, 2018. The round valued ServiceTitan at $1.65 billion.
StockX
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What it is: StockX is a trading website for limited edition and rare sneakers.
Founded: 2012 by Greg Schwartz, Chris Kaufman, and Josh Luber
Total funding: $162 million
Investors: Detroit Venture Partners, CourtsideVC, Revolution, GV, Battery Ventures, GGV Capital, General Atlantic, DST Global, Marshall Mathers, Scooter Braun, Marc Benioff
Most recent funding round: The buzzy sneaker startup raised $110 million in its Series C on June 26, 2019. DST Global led the round, which valued StockX at $1.11 billion.
InVision
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What it is: InVision is a digital-only product design software startup.
Founded: 2011 by Clark Valberg and Ben Nadel
Total funding: $350.2 million
Investors: FirstMark Capital, Tiger Global Management, Accel, Spark Capital, RiverPark Ventures, Redpoint Ventures, Battery Ventures, Goldman Sachs Investment Partners
Most recent funding round: InVision closed $115 million in a combination round that included debt and Series F venture funding on December 11, 2018. The round was led by Spark Capital and valued the startup at $2.02 billion.
Braze
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What it is: Braze is a customer service communication and management software startup.
Founded: 2011 by Bill Magnuson and Jonathan Hyman
Total funding: $177.1 million
Investors: Supernode Ventures, Bullpen Capital, T5 Capital, Ridge Ventures, Rally Ventures, Accelerator Ventures, Citi Ventures, Spark Capital, Shasta Ventures, Battery Ventures
Most recent funding round: Braze raised $80 million in its Series E on October 3, 2018. Meritech Capital Partners led the round, which valued the startup at $850 million.
Outreach
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What it is: Outreach is a customer relationship management and communication tool for sales teams at large companies.
Founded: 2012 by Manual Medina, Gordon Hempton, Andrew Kinzer, and Wesley Hather
Total funding: $237.96 million
Investors: Three Point Group, Founders' Co-op, Version One Ventures, Techstars, Floodgate Fund, Mayfield Fund, Trinity Ventures, M12, Four Rivers Group, Spark Capital, Sapphire Ventures
Most recent funding round: The Salesforce competitor raised $114 million in a combination Series E round that included debt and venture funding on April 16, 2019. Lone Pine Capital led the round, which valued the company at $1.1 billion.
HashiCorp
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What it is: HashiCorp is a cloud-based software infrastructure company for medium and large businesses.
Founded: 2012 by Armon Dadgar and Mitchell Hashimoto
Total funding: $174.53 million
Investors: Haystack, True Ventures, Mayfield Fund, GGV Capital, Redpoint Ventures, Snap, Slack, IVP, Bessemer Venture Partners, AppDynamics, TCV
Most recent funding round: HashiCorp raised an undisclosed amount of venture funding from TCV on January 1, 2019. Two months earlier, it had raised $100 million in Series D funding from IVP with a valuation of $1.9 billion.
Tanium
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What it is: Tanium creates endpoint security software for large-scale organizations.
Founded: 2007 by Orion Hindawi and David Hindawi
Total funding: $682.29 million
Investors: Andreessen Horowitz, Citi Ventures, T. Rowe Price, TPG Capital, IVP, Geodesic Capital, Bullpen Capital, SharesPost, Omega Venture Partners, Baillie Gifford
Most recent funding round: Tanium raised $200 million from Wellington Management on October 2, 2018, in a deal that valued the security startup at $6.7 billion.