ServiceTitan
- ServiceTitan, based in Glendale, CA, makes software for service workers like plumbers and electricians.
- It filed confidential paperwork to go public in 2022, BI reported at the time.
- Now, executives are waiting until after the distraction of the election is over to go public.
It has been more than two years since ServiceTitan, which flies under the radar despite being one of the most valuable startups in Los Angeles, filed confidential paperwork to go public.
After shelving IPO plans in 2022 and then reportedly planning to list in 2024, executives are now waiting until after the distraction of the election is over to make any decisions, according to two sources familiar with the matter. Since companies do not generally want to go public around the holidays, that would likely push ServiceTitan's IPO into 2025.
ServiceTitan did not respond to a request for comment.
The company filed confidentially for an IPO at the start of 2022, aiming for an $18 billion valuation, BI reported at the time. But after Russia invaded Ukraine, many tech stocks nosedived, and the IPO market went dormant, delaying offerings for companies like Stripe and Navan.
Reuters reported at the end of 2023 that ServiceTitan was planning to go public as soon as the second quarter of 2024 and was working with investment banks Goldman Sachs and Morgan Stanley.
There have been signs of life in the IPO market this year, including Reddit's successful debut in March. But predictions of the floodgates finally opening have not panned out, according to Cameron Lester, global co-head of technology, media, and telecom investment banking at Jefferies.
"This year has been a disappointment for IPOs," said Lester. "However, we expect a strong 2025 with lots of companies getting ready to go public."
Now, in addition to turbulent markets, the attention on the presidential race is a factor in companies delaying their plans to go public until after November, according to Lester.
"This is a really noisy time with the election," said Lester.
ServiceTitan makes software for service workers like plumbers and electricians. It was founded in 2012 by Ara Mahdessian and Vahe Kuzoyan as a way to help their fathers, who were contractors who struggled to keep up with back-office operations.
"We see something of our fathers in each contractor we meet — a drive to build a better business and a better life, the founders wrote on their website.
ServiceTitan was valued as high as $9.3 billion in a 2021 funding round led by Dragoneer Investment Group and Thoma Bravo, according to PitchBook data. By 2022, with the IPO delayed, its valuation was slashed to $7.6 billion in a round led by TPG, Tidemark (US) and Generation Investment Management.
The company is now valued at $4.8 billion on secondary markets, according to Caplight.