2024 IPOs UNLOCKED: Israeli Unicorns Through the Lens of Secondary Trades

As the managing partner, my perspective on growth-stage companies is uniquely enhanced by the lens of secondary trades. It's important to note that this data, while extensive, does not offer a straightforward projection to future valuations. Nevertheless, I've found it to be an invaluable tool for identifying emerging trends. In this post, I'm excited to delve into the trading patterns of Israeli and Israeli-related companies observed this winter. My goal is to spark a conversation on these insights, and I invite you to join me in this discussion.

Let's dive into the trading-volume champions, where we aggregate the sum of asks and bids. Leading the pack, as expected, are IPO candidates Snyk, Navan, and Deel, demonstrating significant market activity. What might come as a surprise, however, is the lower trading activity observed in companies like Gong and AI21 Labs, which have previously garnered considerable attention. Despite their recent quiet on the trading front, we continue to monitor these companies closely, keeping an eye out for any shifts in their market dynamics.?

Digging deeper, we split the companies into three groups to get a clearer picture: those on the IPO track, which usually show a healthy mix of people wanting to buy (bids) and sell (asks); then there are the ASK-driven ones, where there's more folks looking to sell than buy; and lastly, the Bid-driven bunch, where the buyers are more eager than the sellers. This breakdown helps us get a better grip on what's happening in the market. Let’s dive into each group and see what the vibes are, what it tells us about investor mood, market fluidity, and what might be on the horizon for these sectors.

IPO Candidates: Deel, Navan, Snyk, and eToro

These companies stand out due to their potential for public listing, making them particularly attractive to secondary market investors, who often seek opportunities to buy shares at a discount prior to an IPO.

• Snyk is poised as the top contender for secondary trades, with plans to go public later in 2024. The company exhibits a balanced bid/ask ratio and minimal spreads in its secondary market trades.
• Deel targets a 2025 IPO, with its current valuation in secondary trades reflecting a 20X multiple, indicating strong investor confidence in its future market performance.
• Navan, aiming for an April 2024 IPO, has shown remarkable growth, with a 233% increase in revenue in 2023. Its strategic integration of ChatGPT into expense reporting processes suggests innovative approaches to business operations.
• eToro is considering another IPO attempt in 2024, following a withdrawn SPAC merger in mid-2022. The company's valuation in the secondary market has been subject to a 13% discount from its last funding round.

Ask-driven Companies: BigID, Trax, HoneyBook, and Via

This segment includes companies where investor interest is primarily driven by the ask side, suggesting a careful evaluation of fundamentals before investing, possibly allowing for acquisitions at a discount.

Bid-driven Companies: PlacerAI, Wiz, Claroty, and BioCatch

The last group, showcasing a trend towards software as a service (SaaS), includes companies like PlacerAI, which uniquely trades at a small premium compared to its last funding round. This anomaly in the secondary market signals strong investor confidence and demand, making it a critical point of interest for those studying market trends.

Wrapping things up, I've gotta say, the secondary market has really taken off. Just think, a year back, we were looking at maybe 50 private companies getting some action on the trading floor, and now? That number's shot up big time. What this means is we're going to see a whole lot more data rolling in on Israeli private companies. And I'm all here for it! So, don't be shy—jump into the conversation and share your take on what all these numbers might be telling us.

If you think I missed any of the up coming Israeli tech IPOs please do comment and I'll be happy to explore it.

The reader should consider that secondary data is constrained and, in our assessment, suggests trends rather than precise figures.