The IPO market that nearly froze during 2022-2023 came roaring back to life in 2025. As of mid-December, 335 companies have gone public on U.S. exchanges—a 55% increase from the same period in 2024 and the strongest showing since the frenzied days of 2021.
But if Wall Street bankers are to be believed, 2025 was just the appetizer. A potential $3 trillion wave of private company listings could make 2026 the biggest IPO year in history.
2025 Year in Review
The numbers tell a story of recovery:
- Total IPOs: 335 (up 55% year-over-year)
- Q3 2025: 65 IPOs raising $15.7 billion—the biggest quarter in four years
- Year-to-date proceeds: Over $30 billion
- Renaissance IPO Index: Up 17%, outperforming S&P 500
The market progressed from a frozen start to a third-quarter surge that saw 23 companies raise over $100 million each.
Standout Debuts
Several IPOs captured investor attention:
- Circle Internet Group (CRCL): The stablecoin issuer surged nearly 170% on day one
- CoreWeave (CRWV): AI infrastructure company up 300% since March debut
- Voyager Technologies (VOYG): Shares doubled on first trading day to $3.8 billion valuation
- Figma Inc. (FIG): Design software company's strong Q3 debut
- StubHub Holdings (STUB): Ticketing platform's successful return to public markets
Fintech was well-represented, with Chime, eToro, and Circle all successfully going public in the first half.
Sector Breakdown
Technology, media, and telecommunications dominated:
- TMT sector: One-third of deals, more than half of proceeds
- AI and crypto: Generated significant excitement and premium valuations
- Financial services and industrials: Produced notable deals
- Biotech: Remained challenged despite broader market recovery
The 2026 Pipeline: A $3 Trillion Wave?
Bloomberg estimates that as much as $2.9 trillion worth of private companies could go public in 2026. The potential list reads like a who's who of private tech:
SpaceX: Elon Musk has confirmed a 2026 IPO, with the company seeking a staggering $1.5 trillion valuation—which would make it the richest listing in history.
AI "Centicorns": Companies valued at $100 billion or more weighing listings:
- Databricks
- Anthropic
- OpenAI (implied valuation over $500 billion)
Other notable candidates: Stripe, Klarna expansion, and various AI infrastructure companies.
The SpaceX Factor
SpaceX's potential IPO deserves special attention. If Musk's $1.5 trillion valuation target is met, SpaceX alone would represent a transformative event for public markets:
- Index implications: Immediate addition to major indices would force massive passive buying
- Space sector boost: Could lift the entire space industry similar to Tesla's effect on EVs
- Retail investor access: Millions of investors unable to buy private shares would finally have access
Of course, executing a trillion-dollar-plus IPO presents unprecedented challenges around pricing, allocation, and market stability.
Warning Signs
Not everything about the IPO revival is healthy:
Valuation concerns: Many companies going public generate little or no profit yet carry towering valuations. Sound familiar? The parallels to the dot-com era are hard to ignore.
Post-IPO performance: Some high-profile 2025 debuts have struggled after initial pops, including fintechs Chime and Klarna.
AI dependency: Much of the market's enthusiasm centers on AI—a trend that could reverse if the technology's monetization disappoints.
How to Approach IPO Investing
For individual investors considering IPO participation:
- Wait for the quiet period to end: Initial trading often features distorted supply/demand; prices stabilize after lock-up expirations
- Research the business: IPO hype often obscures fundamental weaknesses
- Consider ETFs: IPO-focused ETFs provide diversified exposure without single-company risk
- Size appropriately: IPOs are inherently speculative; position sizes should reflect this
- Think long-term: The best IPO investments are often in companies you'd want to own for years
The Bigger Picture
The IPO market's recovery reflects broader confidence in equity markets despite elevated valuations. Investors are willing to fund unprofitable companies at premium multiples, betting on future growth.
Whether this optimism is justified—or a repeat of past exuberance—will become clear as the 2026 wave arrives. For now, the IPO window is open, and private companies are rushing to pass through.
