Sowing Discord in the IPO market

Discord, the gaming chat platform, is reportedly dipping its toe in the icy waters that are the public markets. Originally a platform for gaming enthusiasts, Discord has significantly expanded its reach in recent years, now hosting more than 500 million registered users. Unlike its rivals, Discord offers paid subscription plans, rather than relying heavily on advertising revenue, with features such as 4K streaming and custom emotes hoping to entice users to upgrade to a premium subscription. 

The company has been contemplating an IPO since 2021 (when it was valued in a private financing round at $15 billion) but like most other tech companies, these plans were put on hold due to the challenging political and economic landscape. However, with the decline in interest rates and the Trump administration signifying its intention to adopt a more tech-friendly regulatory approach in the US, there are signs that the public markets may be thawing.

This news coincides with CoreWeave, an Nvidia-backed AI cloud computing provider, announcing its own IPO with a valuation of more than $35 billion. Other companies, including fintech giant Stripe and ticketing platform StubHub, have also revealed IPO plans. In fact, 40 new US IPOs have been priced so far this year, a nearly 74% increase from the same period last year. If this trend continues, 2025 could prove to be a strong year for US IPOs. In stark contrast, the UK public market still remains cold, with little sign of warming up anytime soon.