The news: Marketing automation firm Klaviyo raised its IPO price range to between $27 and $29 from $25 to $27, targeting a valuation of nearly $9 billion as it hits the market Wednesday. This move follows a period of limited but significant tech IPOs, including semiconductor designer Arm and Instacart, which began trading today.
Why it matters: The performance of the latest IPOs, especially Klaviyo, may set the stage for other tech firms contemplating market debuts. However, prevailing valuations indicate Klaviyo may face a reduced valuation compared with its last private fundraising in 2021.
Behind the numbers: Among the US population, 82% are email users; that high level of penetration is actually expected to grow to 83.2% in 2027. But despite email’s prevalence as a marketing channel, nearly half of respondents in a 2023 Airship study either always or often ignore/delete emails from brands without reading them.
Our take: The return of tech IPOs signals renewed investor interest and a potential sector resurgence, with Klaviyo going public after Instacart and Arm's successful offerings.