Stock market enthusiasts wait with bated breath as some of the hottest private tech companies gear up to go public this year. A few years back, the billion-dollar startup club used to a be as exclusive as could it get; however, with venture capitalists relentlessly pumping in large sums of money, the billion-dollar club is opening its gilded doors to new members everyday. Today, there are many new-age tech companies that have been valued at above a billion dollars.
Even though a billion-dollar tech startup is not the safest investment option, it still does offer plenty of promise, especially when you look at the ever-increasing valuations of some big names out there. Considering the fact that the 21st century is indeed a technologically-oriented one, investing in tech stocks could turn out to be a wise decision. For the more adventurous investors looking to make a killing out of new-age tech stocks, here are a few billion-dollar options worth checking out:
Uber
This privately-held company stands testament to the power of mobile app networking. Uber has been valued at more than $41 billion in recent times, and the services that it offers are available in more than 53 countries across the world. Even though Uber has had to deal with some regulatory issues in the past, it is a potential option and well worth considering. So far, there hasn’t been any clear announcement on their part, but many new investors in the company believe that an IPO is very likely in the near future.
Snapchat
A photo-messaging app that has taken the world by storm, Snapchat shocked everyone when it spurned a $3 billion acquisition offer from Facebook in 2013. Like Uber, Snapchat drew in massive investments in 2014 after consecutive rounds of funding; this makes an IPO less likely in the near future. However, the company is now rumored to be valued at more than $10 billion, exceeding all investor expectations. Recently, the company also filed to issue to 25 millions new shares, keeping prospective investors guessing. This is yet another billion-dollar startup to look out for this year.
Flipkart
One of the few Indian-based startups that are part of the elite billion-dollar club, Flipkart is a rare success story. After initially planning to go public in 2014, this e-commerce company subsequently raised $1 billion in funding. Such a round of funding made the need for an IPO obsolete, and the company was soon valued at around $7 billion. Currently valued at around $10 billion, Flipkart plans to go public very soon on the New York Stock Exchange. Flipkart’s biggest investor, Tiger Global, is likely to be a big part of the IPO, and its listing on the NYSE has definitely eased the path for Flipkart’s entry into a foreign market.
Dropbox
This San Francisco-based organization recently announced a strategic partnership with Microsoft. In January 2015, Dropbox had raised $350 in equity financing, and a few months later, secured $500 million more in debt financing. Dropbox has reported increased earnings along with an expanding user base every year since it was established. Rumors abound that Dropbox may finally go public in 2015. Currently valued at around $10 billion, the Dropbox IPO price may reflect a P/S ratio of nearly 30, as maybe be gleaned from the Series C share price.
References:
http://upstart.bizjournals.com/money/loot/2015/01/05/companies-are-on-the-ipo-watch-list-for-2015.html?page=all
http://money.cnn.com/2014/12/29/investing/ipo-outlook-2015-uber/
http://graphics.wsj.com/billion-dollar-club/
http://www.forbes.com/sites/stevenbertoni/2014/09/08/wish-you-could-invest-in-uber-and-lyft-heres-a-clever-way-to-get-rich-off-rides/
http://www.cnbc.com/id/102243893#.
http://fortune.com/2015/01/26/2015-blockbuster-year-tech-ipo/
http://anthonypompliano.com/2014/10/10/the-snapchat-rocketship/
http://fortune.com/2014/09/05/messaging-app-snapchat-authorizes-more-shares/
http://businesstoday.intoday.in/story/flipkart-raises-1-billion-dollar-funding-will-not-go-public/1/208671.html
http://www.india.com/business/flipkart-planning-ipo-list-on-new-york-stock-exchange-266512/
http://amigobulls.com/articles/steep-valuation-might-complicate-dropbox-ipo
http://www.forbes.com/sites/benkepes/2014/11/04/microsoft-and-dropbox-announce-strategic-partnership-pre-ipo-validation/
Image References:
http://main.abqjournal.netdna-cdn.com/wp-content/uploads/2014/11/uber.png
http://tbp-careerfair.herokuapp.com/assets/logos/snapchat.png
http://www.consumercomplaints.in/thumb.php?src=flipkart.jpg&wmax=900&hmax=900&quality=90&nocrop=1&bname=100087
https://www.boxcryptor.com/sites/default/files/Dropbox-Logo.png