Car rental start-up, Turo, based in San Francisco, has faced delays in its plans to go public due to market volatility. The company’s CEO, Andre Haddad, announced last week that the timing was not right for an IPO. Uncertainty in the stock market, caused by the administration’s tariff announcements and regulatory changes, has resulted in a slow start to the expected wave of public offerings.
Despite some companies raising funds through listings, many big-name companies have continued to delay their IPO plans, such as Cerebras and Klarna. Stripe and Databricks have opted to stay private, utilizing the private market to raise capital instead. This trend has been encouraged by investors like Goldman Sachs CEO David Solomon, who believe that private funding meets the capital needs of start-ups without the pressures associated with going public.
The trend of private companies facilitating tender offerings to allow employees to sell stock and pay taxes has gained popularity, with companies like Databricks and Veeam engaging in such transactions. The uncertainty in the market has caused companies like Justworks and Navan to delay their public listing plans, waiting for the right moment to capitalize on market enthusiasm. Overall, companies are cautious about going public and are waiting for more clarity on key economic issues before deciding on their IPO plans.
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