Key Takeaways
- The median valuation for 2025’s IPO cohort has been simply 25% increased than their highest non-public market figures in comparison with the 100%-plus premiums fetched in 2020 and 2021, PitchBook information present.
- The vast majority of the seven tech unicorns that went public this yr listed at valuations decrease than their excessive non-public market figures.
- This yr’s group additionally confirmed comparatively stronger financials.
Getting a enterprise capital-backed unicorn by means of this yr’s preliminary public providing window has been like making an attempt to get a camel by means of the attention of a needle—unattainable with no little bit of humility.
Although broad market indexes are hovering close to all-time highs, and inventory valuations drawing dotcom bubble comparisons, IPO valuations have been extra modest, and capital markets traders choosier than within the frothy years of 2020 and 2021.
Of the seven tech unicorns which have gone public this yr, all however two—Figma (FIG) and Firefly Aerospace (FLY)—listed at valuations decrease than their respective highest non-public market values, based on PitchBook. That has been the case for a lot of billion-dollar-plus startups which have gone public since 2021, based on a current report from the analysis agency. Additionally, 2025’s new listings confirmed stronger financials than in years previous, indicating increased investor requirements for firms debuting on main exchanges.
The median valuation for 2025’s IPO cohort was 25% increased than their respective highest non-public values, PitchBook information present. That is nearer to the modest 3% premiums final yr’s cohort fetched than the 100%-plus premiums that IPOs fetched in 2020 and 2021.
IPO Market ‘Stays Extremely Selective,” PitchBook Analysts Say
The present IPO market “stays extremely selective and centered on sturdy financials reasonably than high-loss startups,” PitchBook analysts Kyle Stanford and Emily Zheng wrote.
For instance, Chime (CHYM), which accepted an exit valuation 62% decrease than its highest valuation mark as a non-public firm, confirmed income rising by about the identical quantity over the three years main as much as its debut. The typical income for tech IPOs this yr is $831 million, and 4 have hit the $1 billion mark, per PitchBook. Till this yr, the only real firm to have $1 billion in gross sales at IPO since 2022 was Maplebear (CART), which does enterprise as Instacart.
Whereas Figma’s IPO was valued at nearly $20 billion, a high-valuation outlier amongst this yr’s group, it was additionally worthwhile, not like many firms that go public. 1 / 4 of 2025’s IPOs had optimistic internet revenue, in comparison with 2021’s 12%, PitchBook mentioned.
Although this yr’s listings have obtained heat market receptions, the VC exit atmosphere stays “muted,” with few registrations within the pipeline, based on PitchBook analysts. They anticipate 2026 to be extra energetic, although that group should reckon with “the upper bar to entry.”
