ServiceTitan's IPO, CoreWeave's IPO Prep, and Databricks' Record Raise
ServiceTitan made a splash on the public markets on Thursday, opening at $101 per share—a 42% premium to its IPO price of $71. This debut values the company at approximately $9 billion, close to the $9.5 billion valuation it achieved during the funding frenzy of 2021.
However, the road to this milestone wasn’t without challenges. After raising capital at hefty valuations in 2021, ServiceTitan borrowed over $500 million for an acquisition in early 2022. When interest rates surged, the company struggled to raise equity to service its debt.
To address the situation, ServiceTitan issued a tranche of high-interest preferred stock, the cost of which soared by 24% over two years. Now, with its IPO proceeds of about $625 million, the company plans to allocate roughly half to repay this costly preferred stock, marking a significant step toward financial stabilization.
Launchbay Index: A Standout Year in Growth
The Launchbay Index has shown remarkable performance, growing 12% in November alone and 70% year-over-year—outpacing the Nasdaq-100, which posted gains of 5.6% monthly and 32.3% annually over the same periods.
This growth wasn’t solely driven by AI companies. Impressively, 17 out of the 25 Index companies experienced valuation increases this month. In November, Index companies accounted for 67% of the listed volume on the Launchbay platform, up from October—a trend that held steady throughout 2024. For context, the Nasdaq-100 represents about 80% of the weighting in the Nasdaq Composite.
Top-5 companies in the Launchbay Index (OpenAI, SpaceX, ByteDance, Stripe, and Databricks) represented 31% of all listed volume on the platform.
Year-End Achievements:
Median Implied Valuation Growth: +51%
Median Valuation-to-Revenue Ratio: 19
Revenue Growth leader: Anthropic with an astonishing 1000%
Implied Valuation Growth leader: xAI at 350%
Valuation-to-Revenue Ratio leader: OpenAI leads, though xAI may surpass this pending 2024 revenue data.
The Launchbay Index reflects the momentum of private tech markets and sets a high bar for 2025.
CoreWeave Prepares for IPO
CoreWeave , a member of the Launchbay25 Index, is reportedly moving quickly to confidentially file its IPO prospectus this week, according to The Information. This crucial step positions the company for a potential public debut as early as April 2025.
As one of the largest and fastest-growing private tech companies, CoreWeave is projected to exceed $2 billion in revenue this year. Its remarkable growth is reflected in the secondary market, where its valuation surged by 278% in 2024.
Databricks Nears Record $9.5 Billion VC Raise
Databricks , a Launchbay25 Index member, is closing in on one of the largest venture capital rounds ever, driven by surging investor demand. The nearly double-oversubscribed round is set to exceed $9.5 billion when finalized next week—well above earlier expectations.
The funding will value Databricks at over $60 billion, with shares priced at $92.50 each. In addition, the company is negotiating $4.5 billion in debt financing, including a $2.5 billion term loan from direct lenders. Investors in the round will also receive preferred shares as part of the deal.
Perplexity AI Eyes Revenue Growth and Monetization Opportunities
Perplexity AI, another standout member of the Launchbay25 Index, is projecting its annualized revenue to more than double in 2025, reaching $127 million.
In a strategic move, Perplexity has launched a Merchant Program aimed at unlocking future monetization potential. While the company currently doesn’t charge commissions on sales, the program provides merchants with free API access to build Perplexity-powered search experiences. Additionally, merchants gain access to a custom dashboard offering valuable shopping trends and insights, positioning Perplexity as a key partner in driving data-driven commerce.
Anduril Opens Lattice Platform to Partners
Anduril Industries has entered a new phase of platform development, opening its Lattice system to third parties with the launch of the Lattice SDK and Lattice Partner Program.
The SDK enables seamless integration into Anduril’s systems via APIs and reference implementations, while the Partner Program offers tools like developer sandboxes, documentation, representative datasets, and testing resources. This initiative aims to accelerate new applications, streamline integrations, and deliver capabilities to warfighters at the edge.
At launch, the program includes 11 partners, such as Apex, Oracle, Scale AI, and Textron Systems.
Anduril’s decentralized approach addresses two key challenges for the U.S. Department of Defense:
Military systems operating in isolation instead of coordinated networks.
Overreliance on centralized command structures, vulnerable in contested environments.
Their solution: a decentralized mesh of interconnected systems across land, air, sea, and space, sharing real-time data to create a unified dataset for informed, critical decision-making.
New primary rounds
Speak, developer of an “AI-driven” language-learning app, raised $78M witha valuation $1Bn.
Zest AI raised a $200 million growth investment to accelerate the adoption of its machine-learning tools for credit underwriting.
One, the consumer fintech platform mostly owned by Walmart, raised a funding round over $300 million at a $2.5 billion pre-money
Berlin insurtech Wefox is reportedly raising a round that would see its valuation slashed by nearly 90%: Wefox is reportedly trying to raise up to €80m at a €500m valuation.
AI infrastructure provider Crusoe closed a $600 million funding round at a $2.8 billion valuation.