A rocky IPO launch by AI cloud provider CoreWeave has raised eyebrows, but it doesn’t necessarily signal a bleak outlook for tech’s IPO market. Despite CoreWeave’s shares falling 5% in early trading before rebounding to near $40, the company still faces challenges from high debt and customer concentration.
CoreWeave’s issues were evident even before its stock began trading. The company’s filing revealed concerns over revenue concentration, with two customers accounting for 77% of revenue. Nvidia, a key backer, stepped in to anchor the stock at $40 per share, amid reports of a heavy debt load.
While CoreWeave’s disappointment may have tempered hopes for tech IPOs, several other promising listings are on the horizon. Klarna, a buy-now-pay-later company backed by Sequoia and SoftBank, is set to file for an IPO soon. Discord, Figma, and Databricks, among others, are also rumored to be working towards their own IPOs.
These upcoming listings suggest that tech’s IPO market remains active, despite recent setbacks. As CoreWeave’s experience shows, even a rocky start doesn’t define the entire year’s prospects.
Source: https://fortune.com/2025/03/28/coreweave-ipo-2025-klarna-databricks-discord