Today, we're bringing you the second part of our 2018 IPO Watch, including a list of the top 12 companies potentially going public this year...
We've created our IPO watch list based on Forbes' annual list of 25 startup companies with the potential to hit $1 billion in valuation. Forbes teamed up with TrueBridge Capital Partners to analyze each company's business strategy, the challenges it faces from competitors, any challenges it has accessing funding, and current revenue.
When companies are increasing their revenue and creating strong valuations, IPO offerings could be down the road.
We aren't saying these companies will definitely go public in 2018. But there were four companies with valuations of $1 billion that went public in Q2 2017.
They were Okta Inc. (Nadsaq: OKTA), Cloudera Inc. (NYSE: CLDR), Delivery Hero AG (ETR: DHER), Blue Apron Holdings Inc. (NYSE: APRN).
That's double the two that went public in Q1 2017.
We published our list of the first 13 companies to watch on Nov. 22, 2017, and you can find the list right here.
And now we're unveiling the rest of the 12 companies that could reach valuations of $1 billion in "part two" of our 2018 IPO watch.
The companies to watch are ordered alphabetically.
The first company on this list is BetterCloud, a software company in a market expected to reach $130 billion in 2017...
IPO Watch, Company No. 12: BetterCloud
BetterCloud makes software that allows IT departments to manage employees' cloud-based applications.
In 2015, CEO David Politis rebuilt the platform to help departments manage any software used in business, from Slack to Zendesk.
The company has raised $47 million, and Forbes projects BetterCloud's revenue will hit $21 million in 2017...
IPO Watch, Company No. 11: Blend
Blend is an innovative company that streamlines the mortgage process for lenders and borrowers.
Traditionally, applicants would need to get a pay stub and have their employer verify it by phone.
That could take up to a week.
Blend makes the process faster, using payroll processors to reduce the amount of steps needed to verify income.
Currently, leading banks like Wells Fargo and U.S. Bancorp use Blend. The company plans to expand into other types of loans, such as auto and education.
Blend has raised $160 million and is projected to make $27 million in revenue this year.
IPO Watch, Company No. 10: BrightHealth
BrightHealth launched in Colorado in 2017 and partnered with Centura Health to provide health insurance for 11,500 people.
It's expanding to new markets, including Alabama and Arizona, and BrightHealth expects to increase its subscribers to 40,000 by 2018.
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The company was originally focused on individuals covered under the Affordable Care Act, but it's switched its focus to those covered in the Medicare Advantage market.
So far, BrightHealth has raised $240 million, and revenue is expected to total $45 million for 2017.
IPO Watch, Company No. 9: Cohesity
Cohesity develops systems for corporate data storage and recovery of data, such as inventory and personal records.
Its founder and CEO, Mohit Aron, was the lead developer for Google's File System storage product.
Currently, Cohesity has 300 customers who pay an average of $225,000 for its product, which includes a combination of software and servers.
Cohesity has raised $160 million, and revenue is expected to reach $50 million by the end of the year.
IPO Watch, Company No. 8: Farmers Business Network
Farmers Business Network provides pricing information to farmers for goods and supplies, utilizing data analytics to let them compare prices. Members can see the market average for products before they buy them.
The network also sells fertilizers, pesticides, and seeds online.
So far, Farmers Business Network has received $84 million in funding. Forbes projects year-end revenue will reach $60 million.
IPO Watch, Company No. 7: Flexport
Flexport offers freight-forwarding and tracking services.
"Freight forwarding" is a middleman operation within the cargo shipment business.
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It lets customers book shipments, track global freight movements in real time, and manage product data.
FlexPort has raised $204 million in equity. Its revenue this year is expected to hit a whopping $500 million.
And the next company on our list is trying to stake their claim in a $41 trillion industry...
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IPO Watch, Company No. 6: Fundbox
The U.S. business-to-business transactions market is worth $41 trillion annually. Fundbox wants a chunk of that, and it offers small businesses short-term financing via lending.
This eases cash flow crunches at lower interest rates than the business may receive elsewhere.
Next year, it plans to roll out a new product, a credit card-like device for B2B transactions.
So far, Fundbox has raised $108 million in funding. Year-end revenue is expected to total $55 million.
IPO Watch, Company No. 5: Ginkgo Bioworks
This biotechnology firm develops living cells designed for companies in the fragrance, agriculture, food, and pharmaceutical industries.
For example, it make microbes that generate rose oil for the French fragrance firm Robertet.
The company has raised $154 million, and revenue is expected to reach $20 million.
IPO Watch, Company No. 4: Interactions
Interactions makes software for robo-voice customer service systems.
Its software is powered by artificial intelligence (AI), but if the AI can't understand a thick accent or muffled word, a human can step in and trigger a correct response.
It currently has more than 50 customers, which include Hyatt Hotels Corp. (NYSE: H) and the health insurer Humana.
Interactions has raised roughly $163 million, and its 2017 revenue is forecasted to reach $100 million.
IPO Watch, Company No. 3: Jive Communications
Jive makes a cloud-based communication system that integrates video, voice, and other communication applications.
This Utah-based company is one of a handful of players trying to dominate the $40 billion market of replacing old corporate phone systems, according to Forbes.
So far, Jive has raised $19 million and is expected to net $100 million in revenue this year.
IPO Watch, Company No. 2: Leesa Sleep
Leesa Sleep makes and sells mattresses online and at West Elm Stores.
Aside from uprooting the $15 billion mattress industry, Leesa also has a social-impact strategy. It donates one mattress for every 10 it sells, and it has given away roughly 20,000 mattresses.
Leesa Sleep has raised $30 million, and it could make $150 million in revenue for 2017.
IPO Watch, Company No. 1: Livongo
Livongo manufactures and sells a diabetic self-management system, consisting of a monitor for glucose and a cloud-based analytics and treatment app.
The app returns results to the patient and also alerts healthcare professionals if the readings look dangerous. The company has numerous self-insured corporate clients, including Exxon Mobil Corp. (NYSE: XOM), Boeing Co. (NYSE: BA), and AT&T Inc. (NYSE: T).
Livongo has raised $142 million, and year-end revenue is anticipated to hit $36 million.
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