ServiceTitan is Next + The IPO Process

Here’s the Access IPOs newsletter sent to subscribers on November 30th, 2024. Subscribe to the newsletter for the most significant IPO and venture capital news delivered in your inbox. You’ll also receive exclusive offers for subscribers.

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ServiceTitan IPO to Launch in December

​ServiceTitan filed for an IPO on November 18th. The deal is expected to launch the week of December 9th or 16th. Read the S-1 filing on my website.

We expect an amended filing early next week or the following week, setting the terms of the deal.

This will be the first IPO from a Fundrise Innovation Fund (review) holding. Many Access IPO readers already have a stake in the fund and stand to gain from a successful ServiceTitan launch. It’s not too late to buy in. $10 minimum, non-accredited investors are welcome.

ServiceTitan is a high-profile SaaS company that provides a software platform for service businesses (contractors, HVAC, plumbing, etc.).

Investors are hopeful a successful deal will kick off a wave of IPOs in 2025.

However, it turns out that ServiceTitan has a “dirty” term sheet with a “compounding IPO ratchet structure”. According to a report by TechCrunch:

For every quarter ServiceTitan delayed going public after a deadline of May 22nd, 2024, the company would owe the Series H investors even more stock: 11% annually, compounding quarterly.

In other words, ServiceTitan is under the gun and needs to IPO soon due to previously negotiated terms instead of sensing a receptive public market.

If all goes well, it shouldn’t matter. The public is eager for new offerings.

We’ll monitor the best brokers for IPOs list to see where retail investors can grab shares. Watch TradeStation, Robinhood, SoFi, and possibly Webull or Moomoo.

The IPO Process (Free Download)

New Access IPOs subscribers get instant access to an infographic I made called From Startup to Public Company – The IPO Process. 

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Northvolt is Bankrupt

​Northvolt has filed for bankruptcy. Sweden’s former EV battery darling was supposed to be Europe’s response to the U.S. EV battery-making capabilities being developed by the likes of Redwood Materials and Ascend Elements.

The company had raised more than $15 billion in equity and government and private debt financing. It will now be sold off in parts to the highest bidders.

Notable losers include BlackRock, Siemens, Volkswagen, Goldman Sachs, BMW, Baillie Gifford, and Daniel Ek of Spotify.

Northvolt’s potential led to governments trying to “pick a winner” by providing grant money, while Northvolt failed in execution. Perhaps European leaders were so keen to build their own EV battery capabilities they were blind to incompetence.

For average investors, Northvolt is a lesson in chasing the darlings without regard to valuation or execution. It’s a reminder that even the pros fail big on big bets and stresses the importance of diversifying your investments if you plan to participate in the startup world.

IPO Radar

Here are the latest IPO Radar articles. I’m settling into a writing pace of about one per week.

​Telegram — The social media and messaging platform is known for its speed, privacy, and user-friendly interface. Founder Pavel Durov owns nearly all of the $15 billion+ company but has hinted at a desire to eventually IPO. He’ll need to clean up his rap sheet with French authorities first.

​Gymshark — Gymshark is a U.K.-based fitness apparel maker popular with weightlifting enthusiasts. Founder Ben Francis is a majority owner but has indicated he is interested in giving back to the lifting community through share ownership.

​xAI — Elon’s AI company is worth $50 billion. It was worth less than $1 billion just one year ago, in November 2023. Stunning. But can it live up to the valuation?

​CoreWeave — Reuters reported that CoreWeave is seeking a $35 billion valuation in a Q2 2025 IPO, targeting a $3 billion raise. It just completed a $650 million tender offer this November, valuing the company at $23 billion. This company is either growing wicked fast or not shy about cashing in on the AI frenzy to come.

Conclusion

That’s all for this edition of the Access IPOs Newsletter. Reply to the newsletter email or comment below if you have any feedback.