Market Performance Trends of Tech IPOs

Unicorns are finally spreading their wings. After two brutal years of stalled liquidity, 2025 is delivering proof that exit markets are reopening for business. The numbers speak for themselves. Seven venture-backed tech companies have already gone public this year, raising roughly $6B, more than triple 2024's full-year total. The debut performances are strong: Circle jumped 180% (and even more recently), Chime rose 59%. With 80+ startups sitting in the confidential filing queue, the "window open" signal is unmistakable. Meanwhile, Q1 logged approximately 550 VC-backed tech acquisitions worth ~$71B, the strongest quarter since 2021's peak. Google's pending $32B Wiz acquisition and SoftBank's $14B Ampere deal prove that both strategic buyers and PE firms are writing big checks again, particularly for AI, cloud, and infrastructure assets. Why does this transformation matter? LPs should see distribution-to-paid-in ratios improve for late 2010 vintage funds as these exits close, finally addressing the cash return gap that's plagued the market since 2022. Companies that stayed IPO-ready during the downturn by keeping their financials audited, legal documents organized, and SEC paperwork drafted, can go public in weeks. Those who let their preparation slide will need 6-12 months just to get their house in order. But let’s keep in mind that this isn't 2021's euphoria returning. It's a measured thaw. If you've been building all through the winter, it's time to refresh your exit strategy and position for the liquidity wave that's finally beginning to crest.

Across APAC, I'm seeing increased interest from #corporatedevelopment and #buyside teams looking to capitalize on these sector tailwinds — whether through direct #M&A, #minorityinvestments, or positioning companies for eventual #publiclistings. These conversations reflect a rising strategic appetite to scale regionally via inorganic growth — while public market windows remain narrow but open for quality #assets. While Europe has drawn more institutional flows (Europe: 8.9x EV/EBITDA vs US: 9.5x, Q1 2025), the IPO story in APAC is increasingly differentiated across markets: 🇮🇳 India: The Standout Performer - VC/PE-backed IPOs more than #doubled from 2022 to 2024. - Strong domestic liquidity driving exits across fintech, consumer platforms, and cleantech. - Top IPOs include Swiggy ($9.8B exit), Bajaj Housing Finance Limited, and Hexaware Technologies. 🇯🇵 Japan: Steady, Disciplined, Institutional-Backed - #IPO volumes remain stable, focused on profitable, midsized companies. - Asset-light #B2B sectors like healthcare and industrial tech continue to lead. - Governance reforms and strong institutional participation maintain pricing discipline 🇰🇷 Korea: Strong Pipeline, Selective Exits - Healthy activity in healthcare, IT, and AI sectors. - Institutional confidence remains cautious due to mixed post-IPO performance. - Still considered one of APAC’s high-probability IPO venues The IPO window across APAC isn’t closed — it’s become narrower, more disciplined, but highly rewarding for companies with earnings visibility, governance strength, and capital efficiency. 📖 Sources: PitchBook Q2 2025 Analyst Note: Opportunities in APAC IPO Markets: https://lnkd.in/ggEy7jKi PitchBook Q1 2025 Global M&A Report: https://lnkd.in/g6m4MXMg #EmergingMarkets #VentureCapital #IPO #APAC #PrivateMarkets #LPInsights #ManosCapital #Fundraising #CrossBorderCapital #Japan #Korea #India #GrowthMarkets #MergersAndAcquisitions #InorganicGrowth #CorporateDevelopment

While headlines celebrate the return of the IPO and a handful of AI titans raising billions, our Q3 data at EquityZen reveals a more nuanced reality. The "growth at all costs" era is over, replaced by a flight to quality and a return to rational pricing.In our new Secondary Spotlight Report, we unpack the trends defining this new landscape. Here are three takeaways that stood out to me: 🔹 The Great Valuation Divide: While the average company still trades at a ~29% discount, a select few—especially in AI and Industrials—are commanding significant premiums. This isn't a contradiction; it's a sign of a highly discerning market. 🔹 The Action Shifts to Secondaries: Even as overall VC deal counts pace behind last year, our platform saw deal volume double from H1 2024 to H1 2025. The demand for access to high-growth innovators hasn't vanished—it's shifting. 🔹 The Rise of the "Up-and-Comer": We're seeing the highest level of interest in younger companies (under 5 years old) since 2018. Investors are increasingly looking beyond the mega-unicorns for the next wave of market leaders. This is one of the most dynamic and interesting periods I've seen in the late-stage market. For founders, employees, and investors, understanding these shifts is critical. You can read the full report here: https://lnkd.in/esha5EHm What trends are you watching most closely as we head into Q4? #PrivateMarkets #VentureCapital #Investing #Tech #AI #SecondaryMarket #Fintech

What Happens After Unicorns Go Public? Almost a third of all unicorns that held IPOs are no longer publicly traded. Of the 259 US unicorns that went public since 2001: – 72% (186 companies) are still trading today – 26% (68 companies) were acquired, merged, or went private – 2% (5 companies) went bankrupt or shut down Notable examples include LinkedIn (acquired by Microsoft in 2016) and Twitter (taken private by Elon Musk in 2022). Rubius Therapeutics represents a less successful outcome, shutting down in early 2023, five years after its market debut. The top performers 180 days after IPO show exceptional returns: – Actua: 873% (1999) – Upstart: 323% (2020) – Homestore.com: 296% (1999) – Red Hat: 242% (1999) – Juniper Networks: 226% (1999) – SolarCity: 193% (2012) – Schrödinger: 154% (2020) – Reata Pharmaceuticals: 114% (2016) – VIR Biotechnology: 108% (2019) – Guardant Health: 108% (2018) However, it's important to note that many of the top performers come from the 1999-2000 dotcom era. A high return in the first 180 days doesn't guarantee long-term success – many companies from this period subsequently lost much of their gains. The data shows most unicorns returned less than 100% in their first 180 days of trading (outside these top performers), highlighting that exceptional post-IPO performance remains relatively uncommon. Learn more in our Unicorn Report: https://lnkd.in/gEwtJq5j

The year 2025 was a year for #ipo parties. Starting from Urban Company, Groww and ending with Meesho, PW (PhysicsWallah). The trend is only set to continue in 2026 with boAt Lifestyle, PhonePe and many more. On the demand side, this is clearly driven by a maturing investor base. Indian retail investors today are far more comfortable backing new-age, tech-led #business, even when profitability is just beginning to emerge rather than being fully scaled, as evident from the strong oversubscription of #tech IPOs. But there's another interesting reason why there is a surge of #startups looking to list. Late-stage private funding in India has structurally changed. Raising #capital post-Series B/C has become increasingly difficult, with investors demanding clear paths to profitability and strong unit economics. In fact, funding levels in 2025 was among the lowest seen in the last decade, comparable to 2015, when the startup ecosystem was just beginning to mushroom. The implication is clear: Only #companies with real fundamentals are able to survive beyond a point in the private #markets, that too in very specific sectors like Q-Commerce( Zepto being the prime example). For many others, the playbook has shifted to proving profitability for a year or two, and then accessing public markets directly for growth capital. #kneeledge

🚨According to a Moneycontrol analysis, 15 startup and consumer-tech firms raised close to Rs 40,000 crore during the year, over 35 percent more than the Rs 29,000 crore mobilised from 13 IPOs in the previous year, reflecting sustained public-market appetite, improved operating metrics and a broader shift in investor confidence towards Indian tech companies. The surge has coincided with a drop in late-stage private funding, a shift that has pushed more scaled startups to prioritise public listings over private rounds. Late-stage funding among Indian startups declined almost eight percent year-on-year to $7.39 billion across 371 deals in 2025, down from $8 billion across 412 deals in 2024, according to Venture Intelligence. Combined, the 15 IPOs mobilised over Rs 18,000 crore in fresh issuances that went directly into companies' growth plans and over Rs 20,000 crore through offers of sale, enriching venture funds and early founders — making 2025 one of the strongest public exit years for early investors. by Aryaman Gupta https://lnkd.in/gA4sV-nd

The IPO market has been volatile since the 2021 boom, facing challenges from inflation, interest rate hikes, and geopolitical instability. Despite hopes for stability in 2025, recent trade tariffs and market downturns have created uncertainty. CoreWeave and Klarna are expected to go public soon, as companies facing capital needs and employee liquidity pressures decide to list despite the instability. Wall Street banks, struggling with a lack of tech IPOs, are pushing clients to market, hoping successful listings will boost investor confidence. April and May are seen as key months, and if IPOs don’t pick up, 2025 could be a weak year for the market.

Omada Health, which went public three months ago, just released promising results: more than 60% of its members maintained weight loss after discontinuing GLP-1 therapy. I wrote down a few thoughts. 1️⃣ 𝐔𝐧𝐭𝐢𝐥 𝐫𝐞𝐜𝐞𝐧𝐭𝐥𝐲, 𝐇𝐞𝐚𝐥𝐭𝐡𝐓𝐞𝐜𝐡 𝐈𝐏𝐎𝐬 𝐰𝐞𝐫𝐞 𝐚 𝐛𝐥𝐨𝐨𝐝𝐛𝐚𝐭𝐡 Over 90% of HealthTech companies (including TechBio) that went public have significantly underperformed. Halle Tecco analyzed 23 digital health SPACs (around 40% of all HealthTech public listings went through SPACs). Her findings: ▪️30% declared bankruptcy ▪️26% were acquired at steep losses ▪️90% of those still trading have lost double-digit value since debut But now, it seems this dynamic may finally be shifting. 2️⃣ 𝐓𝐞𝐦𝐩𝐮𝐬, 𝐖𝐚𝐲𝐬𝐭𝐚𝐫, 𝐇𝐢𝐧𝐠𝐞, 𝐎𝐦𝐚𝐝𝐚 = 𝐫𝐞𝐚𝐥 𝐮𝐧𝐢𝐜𝐨𝐫𝐧𝐬 As of September 9, 2025, their market capitalizations were: Tempus AI = $14B Waystar = $7B Hinge Health = $4.5B Omada Health = $1.4B For comparison: Philips, the leading MedTech, has a market cap of $23B. Tempus is going straight after Philips. 3️⃣ 𝐁𝐞𝐜𝐨𝐦𝐢𝐧𝐠 𝐝𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐨𝐫𝐬 Last year, Hinge Health launched its Strategic Solutions Alliance, which now includes 13 partners whose solutions can be distributed directly to Hinge Health’s member base. This is a more generic pattern: once a HealthTech has gained a strong installed base through its point solution, it becomes a curated marketplace. 4️⃣ 𝐓𝐞𝐦𝐩𝐮𝐬 𝐢𝐬 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐜𝐥𝐢𝐧𝐢𝐜𝐚𝐥 𝐜𝐚𝐫𝐞 𝐢𝐧 𝐨𝐧𝐜𝐨𝐥𝐨𝐠𝐲 𝐚𝐧𝐝 𝐛𝐞𝐲𝐨𝐧𝐝 Tempus AI secured the first AI-only CPT reimbursement code in the US (October 2024). It also acquired Page AI, a leader in digital pathology. After oncology, Tempus aims to expand into cardiology, neurology, and psychiatry. 5️⃣ 𝐁𝐞𝐲𝐨𝐧𝐝 𝐈𝐏𝐎𝐬: 𝐬𝐭𝐫𝐨𝐧𝐠 𝐌&𝐀 𝐚𝐜𝐭𝐢𝐯𝐢𝐭𝐲, 𝐞𝐬𝐩𝐞𝐜𝐢𝐚𝐥𝐥𝐲 𝐢𝐧 𝐧𝐨𝐧-𝐜𝐥𝐢𝐧𝐢𝐜𝐚𝐥 HealthEdge, a CareOps player, was acquired by Bain Capital for $2.6B (May 2025) Arcadia, a #healthcare analytics company, was acquired by Nordic Capital for an undisclosed sum (June 2025) Iodine Software (AI-powered healthcare payments) was acquired by Waystar (July 2025) Some HealthTech companies are now mature enough for private equity, while winners like Waystar are consolidating the market. 6️⃣ 𝐄𝐮𝐫𝐨𝐩𝐞 = 𝟎 𝐈𝐏𝐎 While the US (and China) already count dozens of HealthTech #IPOs, Europe has had none. Doctolib could be the first next year… or perhaps Alan. --------- This analysis was made possible by the HealthTech Alpha platform from Galen Growth | Redefining Digital Health Intelligence. Join the Healthcare Business International conference in March 2026 in Paris for more M&A in Healthcare Innovation discussions! Follow HGM Advisory for daily reposts of the most relevant #HealthTech news.

There's been a lot of talk about the relative outperformance of Mag7 vs the broader S&P. How does that trend look in the public software market? Very consistent. Large-cap software has far outperformed the $1-5B bucket. Median returns for companies that had anywhere btwn a $1-5B market cap at the start of 2023 are only up *2%* since that point. Compare that to 69% for $10B+ market cap companies during the same time period. Institutional demand for small-cap software has softened. Relatedly, the total number of new software IPOs at $1-5B market caps has all but evaporated. The volume of pre-ZIRP annual IPOs in that valuation band ranged anywhere btwn 4-13 per year vs 1-2 per year now. The market has inverted. Growth VCs (during bull markets) often forgo price discipline at <$1B valuations due to potential mid-case outcomes in the $1-5B range. It might be time to revisit that perceived safety net. Fortunately, largely thanks to the AI boom, the M&A environment has held steady and remains a viable option. cc Austin Wang

Are Tech IPOs recovering? 📈 I recently shared my views on the #Tech #IPO market with S&P Global’s Iuri Struta, including our expectation for a rebound to more normalized IPO activity, which would benefit broader Tech M&A activity. Here are some key highlights from the article along with some of my own views on what implications an IPO rebound may have for the broader Tech M&A landscape: ▶️ Tech IPO market recovery: The IPO market is expected to recover in 2025, returning to pre-pandemic levels due to improving conditions such as lower interest rates and a shift in investor focus toward small- and mid-cap companies. ▶️ Historical context: Tech IPO activity peaked in 2021 with 215 tech IPOs that year, but collapsed afterward, with only 25 tech IPOs reported in 2024 through December. ▶️ Dual Track IPO / Exits: A more normalized IPO market allows tech companies to explore dual track IPO / M&A processes which increases odds for a successful exit. ▶️ New IPOs Spurs Strategic Acquisitions: IPOs create a new set of companies with clear valuation trading multiples and acquisition currency (both cash and publicly-traded shares) with their own acquisition gameplan. This increases the buyer universe for promising middle market tech companies seeking exits to strategic players. At Drake Star, we and our clients have been operating with a view that the IPO markets are essentially closed. But more recently, we’ve seen IPOs floated as an exit scenario a bit more. IPO windows have been open and closed periodically; very robust IPO windows tend to be open for quite brief periods of time. We are not looking for a boom or spike in 2025, but more a normalized IPO activity. 👇🏻 For the full article, follow the link in the comments below.