Private Markets: Canva draws attention as IPO candidate following Figma debut

Canva is gaining significant attention as a potential IPO candidate. The rising investor enthusiasm around the design-software giant follows Figma’s (FIG) successful debut.

Meanwhile, ChatGPT maker OpenAI is in early-stage discussions about a stock sale that would allow employees to cash out and could value the company at about $500B, a source familiar with the matter told Reuters, Krystal Hu and Shivani Tanna report. That would represent an eye-popping bump-up from its current valuation of $300B, with the sale underscoring both OpenAI’s rapid gains in users and revenue as well as the intense competition among artificial intelligence firms to secure talented workers, the authors say. 

Some of the biggest capital raises by private companies this week include:

• Strand Therapeutics – The next-generation mRNA-based therapeutics company secured a $153M Series B financing. Publicly traded companies in the space include Arcturus Therapeutics (ARCT), Beam Therapeutics (BEAM), and Silence Therapeutics (SLN).
• beatBread – The music funding platform announced that it raised $124M in credit and equity capital. Publicly traded companies in the space include Reservoir Media (RSVR) and Warner Music Group (WMG).
• Clay Scoops – The AI go-to-market development company said it secured $100M in Series C funding at a $3.1B post-money valuation. Publicly traded companies in the space include ZoomInfo (GTM) and Pegasystems (PEGA).
• Capacity – The AI-powered support automation platform for Contact Centers announced the completion of a $92M financing round that included $50M from Chicago Atlantic, a private markets investment firm, and a Series D round close at $42.6M. Publicly traded companies in the space include UiPath (PATH), Verint Systems (VRNT), and Salesforce (CRM).
• Chai Discovery – The AI company that predicts and reprograms the interactions between biochemical molecules to accelerate life-changing therapeutics announced a $70M Series A financing round led by Menlo Ventures. Publicly traded companies in the space include Caris Life Sciences (CAI), Recursion Pharmaceuticals (RXRX), and Schrodinger (SDGR).

Unicorns to watch this week:

• Canva – The record first day rally in Figma’s stock might push other software companies to go public. Among them is the design-software giant Canva, which is drawing significant attention as a potential IPO candidate. Publicly traded companies in the space include Adobe (ADBE), Microsoft (MSFT), and Snap (SNAP).
• Celonis – Another software name under scrutiny for potential public listing is Celonis. Publicly traded companies in the space include UiPath (PATH), IBM (IBM), and SAP (SAP).
• Databricks – The maker of cloud-based data analytics and AI products might be eyeing an IPO this year. Publicly traded companies in the space include Microsoft (MSFT) and Snowflake (SNOW).
• SpaceX – operating in the Space & Transportation sector, SpaceX has an estimated valuation of $350B. Publicly traded competitors include Boeing (BA), Lockheed Martin (LMT), Northrop Grumman (NOC), Rocket Lab USA (RKLB), L3Harris Technologies (LHX), and Virgin Galactic (SPCE).
• OpenAI – operating in the AI Research & Infrastructure sector, OpenAI is said to be in talks about a stock sale that would allow employees to cash out and could value the company at about $500B. Publicly traded partners and competitors include Microsoft (MSFT), Alphabet (GOOGL), Meta (META), and Amazon (AMZN).

IPOs to watch:

• Black Rock Coffee Bar – The company has reportedly filed confidentially for an initial public offering in New York that could value the cafe chain at more than $1B.
• Bullish (BLSH) – the cryptocurrency exchange that counts Peter Thiel as an investor, has filed to go public on NYSE.
• Hengguang (HGIA) – The company has filed with the SEC for an initial public offering of its Class A ordinary shares and reserved the symbol “HGIA” for purposes of listing the Class A ordinary shares on the Nasdaq Stock Market. D. Boral Capital is acting as the underwriter.
• Center Mobile (CTMB) – The company has filed with the SEC for a firm commitment initial public offering of ordinary shares, via which it will be offering 3.75M ordinary shares. R.F. Lafferty is listed as the underwriter.
• StubHub – With a market valuation estimated at $16.5B, the event-ticketing giant was expected to make a public debut this year, but after many delays, 2025 seems the most likely date. Stagnant market conditions and a lack of a major consumer IPOs pushed StubHub to continuously postpone its move to come public. 

“Private Markets” is The Fly’s new recurring series of stories on the latest moves in the private sector, largest unicorn companies and initial public offerings to watch. Fly subscribers, add $PRIVATE to your portfolio for alerts on breaking news in the startup and venture capital space.