Instacart, Databricks, Arm Could Lead the IPO Market Out of Its Freeze

The IPO market remains frozen for now. But once it starts to thaw, the companies that will likely jump into the public markets first are those that can show a path to profitability, have reconciled themselves to lower valuations and—perhaps just as important—are simply sick of waiting.

Grocery-delivery firm Instacart, data-focused software company Databricks and cybersecurity firm Arctic Wolf are seen as the highly valued venture-backed tech firms most likely to hold initial public offerings, according to interviews with more than a dozen bankers, lawyers, investors and others who work on IPOs. Each of those firms will be at least a decade old next year, putting more pressure on them to end the long wait for early employees and investors to sell shares.