The startup IPO boom of 2020-2022 was a historic period for tech unicorns, with many achieving staggering valuations in the public markets, but the momentum has since stalled.
As reported by Crunchbase News, market watchers are now questioning when the next wave of unicorn IPOs will emerge, with hopes for a 2025 resurgence fading as activity remains muted.
Unicorn Valuations: A Historical Perspective
The past decade saw an unprecedented buildup of private-market unicorns—startups valued at over $1 billion—creating a backlog of companies awaiting their public debut.
This backlog, driven by massive venture capital investments, has left hundreds of well-funded firms like Anthropic in limbo, balancing the decision to go public or remain private.
The Current IPO Landscape and Challenges
Despite the slowdown, there are glimmers of hope, as recent IPOs from companies like Figma have doubled their valuations post-listing, signaling potential for a market reopening.
However, the muted activity in 2025 suggests that broader economic uncertainties and market volatility continue to deter many unicorns from taking the plunge.
Public market sentiment remains cautious, with investors scrutinizing profitability more than ever, a stark contrast to the growth-at-all-costs mindset of the early 2020s.
Impact on Startups and Investors
The prolonged delay in IPOs has significant implications, not just for startups but also for venture capitalists who are eager to see returns on their multi-billion-dollar investments.
Companies stuck in the private market risk losing momentum, while employees holding stock options face uncertainty about their financial future.
Looking ahead, experts speculate that 2026 could be the year of revival, provided global economic conditions stabilize and investor confidence in tech innovation rebounds.
For now, leading unicorns like Anthropic, known for their advancements in AI technology, are under pressure to prepare for potential IPOs as a way to capitalize on their high private valuations.
The journey of these unicorns will likely shape the future of the startup ecosystem, determining whether the public markets can once again become a launchpad for the next generation of tech giants.
Alfred Lee
