The Strategist

Future IPOs urge Snap, Airbnb and Uber to step up activities

12/20/2016 - 14:02

Frequent talks of possible IPOs are forcing technology startups Uber, Snap and Airbnb to turn their attention to potential investors. The companies are now trying to convince financiers in reliability of their long-term programs for development and investment. The startups are launching side projects and organize conferences to prove that their multi-billion dollar estimated value is not an empty phrase.

Elliott Brown via flickr
Elliott Brown via flickr
According to The Wall Street Journal, technology companies preparing for IPO go to all lengths to convince investors of their appeal. Brian Chesky, Head of Airbnb, hold a spectacular conference, where he said that his company "will make travel magic once again." According to him, Airbnb is not just some ordinary service for rental housing, but global agency. Not only will it help to choose accommodation, but will also offer local restaurants, help reserve a table, book plane tickets, rent a car, give skateboard lessons, or arrange a photo session. Such statements are aimed at attracting new landlords and guides, and pursue a goal to convince investors in feasibility of investment. Management of the company is trying to prove that sales will grow, the horizon is clear, and its multi-billion dollar estimate is not farfetched.

According to the WSJ referring to informed sources, Snap company, which owns Snapchat messenger, can launch an IPO in the next year. Documents on the placement have already been filed in November. This year, investors evaluated Snap at $ 18 billion, and the sum may reach $ 25 billion during the IPO valuation. In the run-up to the procedure, the company busied itself with some side projects. In September, Snap presented $ 130-worth sunglasses with built-in video camera, gave the device simple name Spectacles, and began to call itself also manufacturer of cameras. This month, the glasses went on sale and fans of Snapchat obediently lined up in a queue to become happy owners of this gadget.

However, IPO of Uber is now the most anticipated initial public offering. In recent years, the company has done everything to go beyond a simple taxi service and become a transport company, which, according to a statement on the site, "change logistical structure of cities" . With an estimated cost of $ 68 billion, the company launched development of self-driving cars, tried its hand in delivery of products and courier services, and plans to start shipping next year. In the future, Uber does not exclude a possibility of launching an air taxi.

Partner of consulting firm Class V Group Lise Buyer told to WSJ that "planning an IPO is not an easy task for any company, and it’s hard to convince investors that they are worth of ever-increasing ratings." "So if you can show that you can establish a business in a new market, it is very convincing and important", - she says. 

This year has has not delivered many IPOs. According to Dealogic, only 109 US companies have placed their shares, being able to raise $ 23.2 billion, compared to 174 placements for $ 36.2 billion in total in 2015. Perhaps that Snap, Airbnb and Uber could convince investors of its appeal, so that 2017 would be more generous in this regard.