These Were The Winners And Losers In A Boring Year For Startup IPOs

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Objectively, 2024 has been a boring year for tech startup IPOs.

Just a handful of U.S. tech unicorns made it to market. Biotech offerings, while more plentiful, are also running well below prior highs.

Aftermarket performance is also not following a dramatic storyline. There are a few that are way up from their debut price, some that are way down, and a lot that look relatively flat.

Still, we can see some standouts in the mix. Below, we pick out winners and losers for venture-backed tech and biotech companies, focusing on large- and medium-sized IPOs.

Top tech performers

Among larger tech offerings, the faraway winner this year is Reddit. Shares of the popular discussion platform are up 332% [footnote]In calculating gain since IPO, we look at where the company priced its shares prior to initial trading.[/footnote] since the company’s March IPO, delivering a market cap around $26 billion.

Next up is Astera Labs, whose shares are up 214% since debuting in March. The provider of AI and cloud connectivity technology was recently valued around $18 billion.

Others that have done well include location sharing app Life360, data security provider Rubrik, and delivery robot developer Serve Robotics.

Tech underperformers

The ranks of underperforming IPOs include a number of companies headquartered or founded outside the U.S.

One is Webtoon Entertainment, a storytelling platform founded in Korea and headquartered in Los Angeles. Its shares have shed around a third of their value since pricing its IPO in June.

Gauzy, an Israeli maker of liquid crystal controllers and films, has also done poorly, with shares losing roughly half their value since debuting in June.

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

Top biotech performers

Biotech companies that debuted on public markets this year also saw plenty of ups and downs.

On the up side, one standout is CG Oncology, which is developing a therapeutic for bladder cancer. Its stock soared in first-day trading in January and has notched further gains following favorable clinical trial results. As of this week, shares were up around 90% from the offer price.

Another strong performer is Ceribell, a developer of electroencephalography technology for diagnosing and managing serious neurological conditions. Shares are up 70% since the company completed its IPO in October.

Others that are up markedly since their IPOs include cancer therapeutics developer ArriVent BioPharma and drug discovery startup Septerna.

Biotech underperformers

Other biotechs have less to celebrate about their post-IPO performance.

One of the worst performers is Metagenomi, a developer of novel genome editing tools that raised over $450 million in venture funding prior to going public in February. Its shares have shed more than four-fifths their value since then.

FibroBiologics, a startup harnessing cells known as fibroblasts for regenerative medicine, has also fared poorly. Since its market debut via direct listing in January, at a reference price of $8, shares have lost more than two-thirds their value.

Fractyl Health, a developer of therapies that target root causes of obesity and diabetes, is another laggard. Since debuting in February under the ticker symbol GUTS, its shares have fallen more than 80%.

Overall, IPOs are up but underperforming major indexes

Overall, more companies that went public this year are above their offer price than below.

Out of 168 companies that debuted on U.S. exchanges in 2024, roughly 56% are currently above their offer price, per IPOScoop.com. In aggregate, the total return is around 8%.

That doesn’t sound too bad. But, one would have done better simply investing in the Nasdaq Composite Index, which is up around 35% for the year.