As 2019 winds down and investors look to the 2020 IPO pipeline, the investment firms with the highest number of potential winners are New York-based Tiger Global and Silicon Valley's Sequoia Capital.
According to a report on Wednesday from research firm CB Insights, Tiger and Sequoia have the most investments in companies that could go public next year. As for companies in the pipeline that are currently worth $1 billion or more, Tiger leads with 27, followed by Sequoia at 21 and Andreessen Horowitz at 20.
Room-sharing site Airbnb, valued at over $30 billion by existing investors, is the most notable company set to hit the public markets next year, following a year that saw big names like Uber, Lyft, Slack and Pinterest all debut and all fail to generate gains for new investors.
Tiger and Sequoia are both investors in Airbnb, though Sequoia got in much earlier and is thus poised to see a bigger profit. Tiger is also an investor in GitLab and Credit Karma, which could both go public next year, while Sequoia's investments include DoorDash, Snowflake and Unity.
Tiger, which made a name for itself in late-stage tech by backing Facebook and LinkedIn ahead of their IPOs, moved up from the ninth spot in 2019's IPO pipeline, according to CB Insights. Other late-stage investors in the top 20 include ICONIQ Capital and Coatue Management as well as Goldman Sachs, which have emerged as some of the most aggressive financiers in the space.
Sequoia moved up to second from fourth. GV (formerly Google Ventures) slipped to third from second, while Andreessen Horowitz and Accel rounded out the top five.
This year was a good reminder that there's plenty of risk, even in the late-stage market. Earlier this month Tiger Global cut Juul's valuation to $19 billion from $38 billion, reflecting the legal and regulatory struggles at the vaping company. Tiger is also an investor in Uber, which has lost one-third of its value since going public, and had a stake in WeWork through its SoftBank investment.
While consumer businesses face challenges, enterprise software companies like Zoom, DataDog and CrowdStrike have been big hits with investors. Tiger and Coatue have been putting money in those areas as well, with Coatue backing Domino Data and mobile infrastructure start-up Mason, and Tiger investing in employee performance software company Lattice and business performance management software vendor Ally.