The IPO window is beginning to crack open again. After several quarters of hesitation, 2025 is shaping up to be a year of cautious optimism, driven by disciplined fintech offerings, surging AI narratives, growing investor appetite for profitable, and defensible business models. Some businesses are simply running out of time and investor patience. Many companies still need to restructure their pref-stack to position for an IPO or an M&A exit. It will be painful, but necessary, as funds and their portfolio companies are in dire need of liquidity.
This is a pivotal moment for growth-stage companies and their investors. The public markets are once again within reach, but access isn't automatic. As filings accelerate and the pipeline fills, only companies with strong fundamentals, clear differentiation, and IPO-ready structures will be able to seize the narrow window that volatility allows.
From Pause to Proceed: Momentum Builds
After geopolitical tensions, especially new U.S. tariffs, temporarily froze activity in Q1, the IPO market is showing renewed life. Chime, MNTN, eToro, and CoreWeave are among the high-growth companies that have now either priced or filed. And with digital health company Hinge Health expected to list next week, the pipeline is growing more diverse.[1]
According to EY, the global IPO market grew 20% year-over-year by value in Q1 2025, despite ongoing uncertainty fueled by monetary policy shifts, geopolitical conflict, and volatility in the AI and technology sectors.[2] While inflationary risk and trade disruptions persist, many companies are moving forward with capital market strategies, particularly in sectors supported by regulatory or policy tailwinds such as defense, digital health, and artificial intelligence.
Chime and MNTN Reflect the New Playbook
Chime Financial, one of the most closely watched fintechs of the decade, filed to go public earlier this month. After delaying its IPO in April due to market uncertainty, the company resumed its listing process once investor confidence began to return.[1] With $1.67 billion in revenue last year and a significant reduction in net losses, Chime exemplifies the kind of operational discipline today's IPO investors are prioritizing.[3]
Meanwhile, MNTN, a connected TV adtech platform, filed to raise $176 million and is moving forward at a projected $1.2 billion valuation. Its ability to pivot quickly after pausing in April reflects how agile leadership is now a key differentiator for IPO-stage companies.[4]
AI, Defense, and Healthcare Drive Strategic Listings
This year's IPO rebound is not just about reopening, it's about repositioning. Artificial intelligence has become a defining theme in investor narratives, with 40-50% of Q1 2025 IPO filings referencing AI strategies or integration.[2] Whether through GenAI-powered advertising, drug discovery, or risk modeling, companies across fintech, life sciences, and mobility are leaning heavily into AI to drive post-IPO growth stories.
The defense and aerospace sectors are also seeing heightened IPO activity. Fueled by rising national security budgets and cross-border policy alignment, over 90 defense companies are currently in the global IPO pipeline, with the majority targeting U.S. exchanges.[2] Public markets are increasingly receptive to defense tech platforms backed by institutional capital, especially those with a path to long-term contracts or procurement relationships.
Healthcare is another bright spot. The Health and Life Sciences sector saw 11 IPOs in Q1 2025, the highest first-quarter total in over 20 years.[2] Companies that combine differentiated science with capital-efficient models are attracting renewed attention, particularly when paired with clear regulatory pathways or AI-driven R&D acceleration.
A Selective, Profitable Market
But even as volume picks up, returns remain mixed. EY reports that the share of profitable IPOs has increased, especially in the U.S. and India, but market enthusiasm hasn't always followed.[2] In the U.S., median first-day IPO returns rose by 3-5%, but fewer than half of new listings delivered gains, as investors prioritized companies with stronger fundamentals and pricing discipline.[2]
This selectivity reflects a broader shift: earnings alone are no longer enough. Companies must demonstrate long-term value creation, efficient operations, and a readiness to navigate the pressures of public markets.
We work with clients from pre-IPO strategy through execution, helping founders, boards, and investors navigate timing, governance, and legal complexity. As this IPO cycle evolves, we're focused on helping companies frame not just why they're ready to go public, but why they're built to stay public.
This market rewards clarity, control, and cohesion. For those who are prepared, the opportunity is real. If you're thinking about 2025 or 2026, or evaluating IPO as one of several paths forward, we'd be glad to help you assess your options.
Footnotes
1. Capoot, A. (2025, May 16). Tech IPO market is finally showing signs of life. CNBC. https://www.cnbc.com/2025/05/16/the-tech-ipo-market-is-finally-showing-signs-of-life.html
2. EY. (2025, April). Global IPO Trends Q1 2025 Report. https://www.ey.com/en_gl/insights/ipo/trends
3. Reuters. (2025, May 13). Digital banking startup Chime reveals rise in revenue as it files for US IPO. https://www.reuters.com/business/digital-banking-startup-chime-files-us-ipo-2025-05-13/
4. Zanki, T. (2025, May 14). Venture-Backed Tech IPOs Forge Ahead As Momentum Builds. Law360. https://www.law360.com/articles/2340116/venture-backed-tech-ipos-forge-ahead-as-momentum-builds
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