Startup News: An IPO spring is almost upon us
With calendrical winter coming to an end in just over a month, the chilly IPO market could soon be much warmer. Literally and figuratively, the market is well-poised to enter an "IPO Spring," as Connor Group Managing Partner Jim Neesen called it in a recent Yahoo Finance interview.1
That's not to say that the high-flying days of 2021 are right around the corner again. Some of those dynamics from yesteryear, like surging interest in SPACs and ultra-low interest rates, don't seem like they will reappear anytime soon.
However, an anticipated softening of the regulatory environment, potential geopolitical healing, a booming AI sector and the general positive momentum in the private-to-public pipeline collectively suggest an IPO revival is almost upon us.
While the actual spring season might not be the complete rebirth of IPOs, we will likely see seeds start to sprout and pave the way for potential growth in 2025 and 2026 for the reasons outlined below.
An IPO Pipeline That's Ready to Burst
Part of the optimism for an IPO Spring lies in the fact that many prominent private companies have taken steps to have an IPO, but have held off on actually going public. Yet, as more test the waters and demonstrate the viability of going public, that could release the floodgates.
At the end of 2024, for example, ServiceTitan went public, raising around $625 million when listing shares at $71, valuing the company at around $6.3 billion.2 On the first of trading day, however, shares jumped 42%, bringing the company's market cap to around $8.9 billion,3 near where it remains today.4
In early 2025, there have also been some notable IPOs. On February 13th, Aardvark Therapeutics, Inc., a clinical-stage biopharmaceutical company rang the Nasdaq closing bell in their public debut.5 Concurrently, cybersecurity software company SailPoint completed an upsized IPO; after initially planning to go public by selling 50 million shares for between $19 and $21, SailPoint ended up selling 60 million shares at $23 per share.6
This type of development could help encourage other large private cybersecurity companies to go public. For example, Snyk, Wiz7 and Cato Networks8 are often considered to be potential IPO candidates for 2025, and while it would take longer than the spring to complete an IPO, it's possible that more filings for these or other startups could start to come in soon.
Meanwhile, some prominent venture-backed fintech companies could go public in the coming months. For instance, Klarna, the Swedish Buy Now, Pay Later (BNPL) giant, is looking to IPO this Spring in April at a valuation of up to $15 billion.9
Chime, one of the biggest neobanks, is another name on IPO watch, having confidentially filed in December.10
The AI sector is also ripe for more potential IPO activity. Private market trading activity on Forge has shown outsized AI returns in recent months compared to the rest of the private market.11 That investor excitement has largely been present for AI companies in the public market, too, which could help spur more venture-backed AI companies to cash in on an IPO soon.
For example, CoreWeave, a cloud computing infrastructure provider for AI workloads, is reportedly eyeing a valuation of over $35 billion with a 2025 IPO.12 Cerebras, a rival to NVIDIA, is also an anticipated IPO candidate, having delayed its 2024 IPO plans.13
Regulatory Tailwinds
Economic uncertainty, geopolitical tumult and issues like relatively high interest rates have provided headwinds in the past few years, which has slowed the IPO market. To be fair, some of this has lingered in early-2025, such as the higher-than-expected U.S. inflation data released in February.14 However, a key difference this year could be in the softening of the regulatory environment in the U.S. under the new administration, particularly if proposed SEC Chair Paul Atkins gets confirmed soon.
As the Wall Street Journal reports, "Investors are hopeful that the agency’s next chairman will ease regulatory burdens for publicly traded companies and help spark a rebound in stock-market debuts."15
While it would take time for Atkins to assume the role and implement changes, it's possible that investor and corporate confidence alone will help spark more IPO filings in the near future.
Moreover, Atkins and the Trump administration overall are widely expected to adopt a friendly environment for crypto, which could propel several crypto-related companies to go public.
For example, Gemini, a crypto exchange and custodian, is reportedly looking to IPO as soon as this year.16 Speculation is also brewing that the SEC could soon resolve its case against Ripple, which could help the company move forward with its expected IPO.17
Global Growth
There may be some changes internationally, too, that could help encourage a more positive global IPO market.
Financial regulators in Hong Kong, for example, announced in February that they would try to make it easier for mainland Chinese companies to list in Hong Kong; as of early 2025 there's about 100 companies in the IPO pipeline, according to the CEO of Hong Kong Exchanges and Clearing.18
Meanwhile, some international IPO activity could further help unlock the private-to-public pipeline. Europe's largest vet group, IVC Evidensia, backed by private equity giant EQT, is considering an IPO in London the months ahead.19
Looking Ahead
Easing regulatory conditions, more positive geopolitical factors, enhanced investor confidence and a buildup in the IPO pipeline around the world could help spark an IPO Spring that would reverberate into 2026. While it may take time for some companies to move forward with their IPO plans, recently planned IPOs for the coming months could encourage those who are waiting in the wings to take advantage of a friendlier environment for raising public market capital.
