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StartEngine Layoffs & TONS of IPO News
A Busy Week In Equity Crowdfunding
Caleb Naysmith
December 13, 2024
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It’s been an eventful week in equity crowdfunding, for good and bad. Some good news for relevant investors: Lot’s of IPO news. There aren’t any companies directly going public in the near future, but lots of companies are making headway towards an IPO.
For example, Mode Mobile reserved a NASDAQ Ticker Symbol. With a huge year of growth and millions in revenue, the company might go public sooner rather than later:
Similarly, Turn Therapeutics announced a $75 million financing agreement contingent on a public offering. This implies the company could be looking toward an IPO in the near future.
Finally, VenHub, an automated store solution, announced a $715 million SPAC deal in what looks like an all-but-certain SPAC offering in 2025.
In some more somber news that Hubtas broke, StartEngine recently laid off 25% of it’s workforce. This comes after a large hiring spree over the past 12-16 months. The layoffs come after a poor Q3, which showed heavy losses and a dwindling cash position.
All these stories and more can be read on Media.Hubtas.Com
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Reminder: Update Your Portfolio Going Into the New Year
If you haven’t already, make sure to update your Hubtas Portfolio with any new investments you made this week. With Hubtas, you can track all of your investors, their gains and losses, and much more. So make sure to log on and update your portfolio so you know how it is performing, and to mentally prepare yourself for those tax implications (although we don’t help with taxes.) To update, click below:
Are Markets Cooling?
The markets faced a challenging week with broad declines across major asset classes, reflecting a pullback of around 3% despite an otherwise strong year.
S&P 500: The benchmark index slid approximately 3% over the past week, pressured by concerns over rising bond yields and persistent inflation worries. However, the index remains up significantly year-to-date, driven by resilient corporate earnings and strength in the tech sector.
Small Caps: Small-cap stocks underperformed relative to larger peers, with the Russell 2000 experiencing steeper losses amid investor rotation into safer, more established companies. Higher sensitivity to interest rate fluctuations and growth uncertainty weighed heavily on this segment.
Venture Capital and Equity Crowdfunding: Fundraising activity in venture capital and equity crowdfunding remains subdued, reflecting cautious sentiment among investors. A tightening liquidity environment and increased scrutiny over valuations have led to slower deal flows and extended timelines for capital raises.
Crypto: The cryptocurrency market also faced significant declines, mirroring broader risk-off sentiment. Bitcoin and Ethereum fell approximately 3-5% over the week as regulatory concerns and declining risk appetite dampened enthusiasm. However, crypto assets remain relatively resilient on the back of institutional adoption narratives and ongoing developments in the political realm.
While this week saw notable losses, markets have demonstrated strength over the course of the year, suggesting this pullback may be a consolidation phase rather than a reversal of the broader trend.
Overall, there might be some short-term pain and cooling off, but it’s unlikely to dampen the broader, long-term trend.