Close Menu
TechBrunchTechBrunch
  • Home
  • AI
  • Apps
  • Crypto
  • Security
  • Startups
  • TechCrunch
  • Venture

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

iOS 19: All the rumor changes that Apple could bring to the new operating system

June 8, 2025

Meta reportedly invests billions of dollars in scale AI

June 8, 2025

WWDC 2025: What to expect from this year's meeting

June 8, 2025
Facebook X (Twitter) Instagram
TechBrunchTechBrunch
  • Home
  • AI

    OpenAI seeks to extend human lifespans with the help of longevity startups

    January 17, 2025

    Farewell to the $200 million woolly mammoth and TikTok

    January 17, 2025

    Nord Security founder launches Nexos.ai to help enterprises move AI projects from pilot to production

    January 17, 2025

    Data proves it remains difficult for startups to raise capital, even though VCs invested $75 billion in the fourth quarter

    January 16, 2025

    Apple suspends AI notification summaries for news after generating false alerts

    January 16, 2025
  • Apps

    iOS 19: All the rumor changes that Apple could bring to the new operating system

    June 8, 2025

    WWDC 2025: What to expect from this year's meeting

    June 8, 2025

    How to watch Apple's WWDC 2025 Keynote

    June 8, 2025

    In WWDC 25, AI must compensate with developers after AI shortage and lawsuits

    June 8, 2025

    iOS 19: All the rumor changes that Apple could bring to the new operating system

    June 7, 2025
  • Crypto

    xNotify Polymarket as partner in the official forecast market

    June 6, 2025

    Circle IPOs are giving hope to more startups waiting to be published to more startups

    June 5, 2025

    GameStop bought $500 million in Bitcoin

    May 28, 2025

    Vote for the session you want to watch in 2025

    May 26, 2025

    Save $900 + 90% from 2 tickets to destroy 2025 in the last 24 hours

    May 25, 2025
  • Security

    The Trump administration is aiming for Biden and Obama's cybersecurity rules

    June 7, 2025

    After data is wiped out, Kiranapro co-founders cannot rule out external hacks

    June 7, 2025

    Humanity appoints national security experts to governing trusts

    June 6, 2025

    Italian lawmakers say Italy used spyware to target immigrant activists' mobile phones, but not for journalists

    June 6, 2025

    Humanity unveils custom AI models for US national security customers

    June 5, 2025
  • Startups

    7 days left: Founders and VCs save over $300 on all stage passes

    March 24, 2025

    AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

    March 24, 2025

    20 Hottest Open Source Startups of 2024

    March 22, 2025

    Andrill may build a weapons factory in the UK

    March 21, 2025

    Startup Weekly: Wiz bets paid off at M&A Rich Week

    March 21, 2025
  • TechCrunch

    OpenSea takes a long-term view with a focus on UX despite NFT sales remaining low

    February 8, 2024

    AI will save software companies' growth dreams

    February 8, 2024

    B2B and B2C are not about who buys, but how you sell

    February 5, 2024

    It's time for venture capital to break away from fast fashion

    February 3, 2024

    a16z's Chris Dixon believes it's time to focus on blockchain use cases rather than speculation

    February 2, 2024
  • Venture

    Meta reportedly invests billions of dollars in scale AI

    June 8, 2025

    Why investing in a growing AI startup is risky and more complicated

    June 6, 2025

    Startup Battlefield 200: Only 3 days left

    June 6, 2025

    Book all TC Stage Exhibitor Tables before ending today

    June 6, 2025

    Less than 48 hours left until display at TC at all stages

    June 5, 2025
TechBrunchTechBrunch

Astera Labs IPO rises 54%, showing strong investor demand for technology with an AI twist

TechBrunchBy TechBrunchMarch 20, 20244 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Telegram Email


Astera Labs started as a publicly traded company and was up 46% at the time of the bell, trading at $52.56 per share. The company priced its IPO last night at $36 per share, above its raised price range. Astera's debut marks the first material technology offering tracked by TechCrunch this year. Reddit, a well-known social forum and AI data provider, is expected to set the price after the close of trading today and launch its own public story tomorrow.

Since trading began, Astera's stock price has continued to rise, rising approximately 54% to $55.73 at the time of writing. The company's strong early trading will surely spark criticism that it was mispriced and that the company left money on the table, but its bullish entry into public life is a sign that other private market tech companies It may help companies find the courage to list their shares after the deal. His IPO activity was limited for a long period of time.

Astera Labs' IPO price valued it at about $5.5 billion, which would balloon to about $8.9 billion at current trading prices. The fully diluted valuation is even higher, but importantly for the company, it priced its IPO above the final private price and then surpassed the latter's valuation shortly thereafter.

quiet winner

The song and dance surrounding Astera Lab's initial public offering has been noticeably quieter than Reddit's IPO, but there's reason to believe this is more of a test of market demand for AI stocks than Reddit's own debut. While Reddit's AI-based data business certainly continues to grow within its operations, its share of 2023 forecasts remains in the single digits, according to TechCrunch's analysis.

In contrast, AI-driven data center construction, which is benefiting Astera Labs, is likely to account for a large portion of the market's current size and future growth. The fact that the company's growth rate accelerated as much as it did in Q4 2023, and managed to get back on track from a loss to GAAP profitability in the quarter, points to the view that the company is a company moving forward thanks to AI demand. is supported. . This is despite the fact that it is a far cry from the more headline-friendly underlying model work that OpenAI and its rivals are working on.

“They're not an AI company, but I definitely think they're benefiting from that trend,” said Renaissance, a company that tracks the IPO market and offers ETFs focused on public offerings. Nick Einhorn, vice president of research at Capital, said: “And I think the most compelling argument for them is the most recent quarter when you look at the revenue growth.”

Astera's debut is also likely to be a better gauge of how venture-backed IPOs will perform this year. Reddit also has a somewhat unique financial past, including venture-backed acquisitions and spin-outs. Meanwhile, Astera Lab was founded in 2017 and has raised $206 million in venture capital, with a final valuation of $3.1 billion, along with other companies people are paying attention to, including Databricks, Stripe, and Plaid. It has become a better company.

Next up is Reddit.

Astera stock's final closing price could be a positive signal for the AI ​​hardware company, but it could also add to the IPO momentum for Reddit's own listing. If Astera had stumbled out of the gate, Reddit might have been injured before it even started trading.

Instead, Astera is publishing first-day trading results for the 2021 era. Perhaps Reddit can follow suit?

Astera's strong performance in its first hours as a public company may also improve investor activity, which has curtailed or completely prevented some initial public offerings. As TechCrunch reported earlier this week, some late-stage startups are struggling with founders who are willing to enter the public markets, even at a lower price, due to high-stakes VC deal terms that include dilution. Even if there is, there is a possibility that the price will be lower than the last initial valuation and it will not be possible to list the company. Gives investors the right to block transactions.

If venture capitalists knew that this startup had the potential to hit the public market like Astera Labs, they would probably think differently about timelines.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

7 days left: Founders and VCs save over $300 on all stage passes

March 24, 2025

AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

March 24, 2025

20 Hottest Open Source Startups of 2024

March 22, 2025

Andrill may build a weapons factory in the UK

March 21, 2025

Startup Weekly: Wiz bets paid off at M&A Rich Week

March 21, 2025

Wayve CEO shares his key elements for scaling autonomous driving technology

March 21, 2025

Leave A Reply Cancel Reply

Top Reviews
Editors Picks

7 days left: Founders and VCs save over $300 on all stage passes

March 24, 2025

AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

March 24, 2025

20 Hottest Open Source Startups of 2024

March 22, 2025

Andrill may build a weapons factory in the UK

March 21, 2025
About Us
About Us

Welcome to Tech Brunch, your go-to destination for cutting-edge insights, news, and analysis in the fields of Artificial Intelligence (AI), Cryptocurrency, Technology, and Startups. At Tech Brunch, we are passionate about exploring the latest trends, innovations, and developments shaping the future of these dynamic industries.

Our Picks

iOS 19: All the rumor changes that Apple could bring to the new operating system

June 8, 2025

Meta reportedly invests billions of dollars in scale AI

June 8, 2025

WWDC 2025: What to expect from this year's meeting

June 8, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

© 2025 TechBrunch. Designed by TechBrunch.
  • Home
  • About Tech Brunch
  • Advertise with Tech Brunch
  • Contact us
  • DMCA Notice
  • Privacy Policy
  • Terms of Use

Type above and press Enter to search. Press Esc to cancel.