The discussion shines a spotlight on ServiceTitan’s unexpected IPO, hinting at potential trends for other startups in 2024. The hosts explore the controversial ratchet provision and its market implications. They also highlight notable advancements in AI and quantum computing, showcasing how big players like Alphabet are still driving innovation. Additionally, emerging venture capital firms Laude Ventures and Dimension are noted for their new funds, emphasizing that even in challenging markets, standout teams can thrive.
ServiceTitan's successful IPO illustrates strong investor enthusiasm and highlights the influence of late-stage investors on tech market dynamics.
Alphabet's advancements in AI and quantum computing reflect a robust recovery strategy, restoring confidence in big tech's innovation capabilities.
Deep dives
Service Titan's Successful IPO and Market Implications
Service Titan's recent IPO demonstrated a positive market sentiment despite being a company that isn't widely recognized. Opening shares at 101 and a jump from the initially priced 71 indicates strong investor enthusiasm, revealing a favorable end to the year for tech companies. The critical role of late-stage investors in pushing Service Titan to go public highlights the dynamics of financial pressures that can influence timing in the tech industry. Moreover, concerns over the ratchet mechanism among VCs reflect ongoing debates about company valuations and highlight a collective hope for stability in the upcoming year.
Future IPO Candidates and Market Sentiment
With Service Titan’s success, there is renewed interest in potential IPO candidates like Databricks, Chime, and Stripe. While some speculate Databricks may wait until 2026 due to recent capital raises, others feel optimistic about Chime making a move next year. The ongoing ability of these companies to secure substantial private funding dilutes immediate pressure to go public, creating a mixed outlook for future market entries. Despite challenges, the positive momentum generated by Service Titan raises expectations for upcoming IPOs and investor enthusiasm for resilient software companies.
Alphabet's Wins in AI and Quantum Computing
Alphabet's recent achievements in AI and quantum computing indicate a strong recovery and innovation strategy. The improvement of their generative AI offerings and a notable lead in self-driving technology, following General Motors' retreat, position Alphabet favorably against competitors. This resurgence has rekindled investor and market confidence, especially as public tech giants continue to outperform expectations. The overall surge in interest towards quantum computing, despite being in its early stages, underlines a growing excitement in the industry regarding long-term technological advancements.
The ServiceTitan IPO has been an unexpected bright spot as 2024 comes to a close.
On this year’s final episode of the Newcomer Podcast, we discuss what other startups might follow in ServiceTitan’s footsteps next year. Eric defends the controversial ratchet provision in its last funding round. And we dig into Alphabet’s big week.
We focus on startups on this show, but this week was a good reminder that the big tech firms like Alphabet and Meta can still turn out impressive moonshot technology from their research labs.
We’re bullish on a couple emerging venture capital firms — Laude Ventures and Dimension — who just closed big new funds. The megafunds may be sucking up the majority of LP dollars, but firms with a clear thesis and a standout team of high performers can still shine in this market.
Give it a listen.
Chapters:
00:00 — Reflections ahead of the new year
05:02 — ServiceTitan’s IPO and Market Sentiment
10:00 — Alphabet’s Wins and the AI landscape
15:08 — The State of Quantum Computing
19:58 — Emerging Venture Capital Trends and Final Thoughts