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After a cautious first half of 2025, the US IPO market has sprung to life. Through the third quarter of 2025, traditional IPOs have raised more than $29.3 billion year-to-date — a 31% increase from last year. In September alone, 13 IPOs raised more than $8 billion, making it the busiest month for new listings since November 2021 and providing a clear sign of building momentum.
The US government shutdown has introduced a new element of uncertainty for companies looking to launch IPOs. But it's too early to tell if the shutdown will last long enough to significantly alter the IPO market's trajectory.
Recent IPOs have included quite a few solid pricing results. Many deals were highly oversubscribed and priced above their initial ranges. Many also delivered solid first-day gains. Activity has been broad-based, spanning sectors including technology, aerospace and defense, medtech, insurance and even food and retail.
Investors are willing to consider multiple paths to public markets. SPAC IPOs had their most active period since 2021, raising more than $18.7 billion year-to-date. De-SPAC transactions remain mixed, however.
The IPO resurgence received a boost from improved financial conditions. A 25 basis point rate cut by the Federal Reserve in mid-September helped lift risk sentiment. Inflation is showing signs of moderation and policy direction is stabilizing. Current forecasts anticipate two more quarter-point cuts this year as long as inflation continues to ease. These shifts, along with the success of recent public offerings, have restored confidence that the IPO window could remain open through the end of the year.
Potential speed bumps remain, though. A prolonged government shutdown could stall momentum. The US economy has slowed, with real GDP growing just 1.3% in the first half of 2025 — about half the pace of 2024 — as hiring cooled and consumer sentiment softened. While PwC’s base case projection calls for GDP growth to ease year-over-year to 1.9% in 2025, a stablized tariff policy could provide a late-year lift.
We see the IPO market as open for companies with the right fundamentals: appropriate scale, strong growth prospects, profitability — or a clear path to it — and the operational maturity to function as a public company from Day One. Investors are rewarding discipline instead of just lofty valuations. With market sentiment improving, the coming months could present the best issuance window in years. Still, conditions can change quickly. Companies that prepare early, remain flexible and are ready to execute decisively will be best positioned to take advantage of opportunities.
“Year to date, IPO activity has rebounded as companies cautiously reenter the public markets, balancing valuations, sector dynamics and capital needs. Looking ahead, we expect selective deal flow in technology, healthcare and industrials as issuers and investors grow more confident—and the window may truly expand when macro conditions stabilize.”
Mike Bellin,IPO Services Leader, PwC USIPO momentum accelerates in Q3-25 amid strongest issuance in years
We’ve seen 60 traditional IPOs raise over $29.3 billion through the third quarter, compared to 48 raising $22.4 billion during the same period in 2024. IPO activity this year has been led by companies across technology, energy and financial services. This year's IPOs are outperforming the broader market — up approximately 27% on average versus a 14% gain in the S&P 500 as of September 30.
In the third quarter specifically, 15 of 26 IPOs priced at the top of the range or above. They had an average price to opening gain of 33%, an average first-day close of 22% and an average current return of 12%. In July, a leading design software platform completed one of the most notable IPOs in recent memory. The deal priced above its revised range and finished its first day up more than 250%, making it the strongest debut ever for a billion-dollar US IPO. This transaction highlights the pent-up investor demand for scaled technology leaders with strong growth, profitability potential and operational maturity. The giant first day price jump, however, does show the increasing difficulty some issuers have trying to find a balance between a listing price that appeals to both institutional investors and aftermarket retail investors.
The largest IPO of the third quarter came from a global consumer finance and payments platform, which priced above range and raised over $1.3 billion. The offering drew broad institutional support, though its aftermarket performance was down a more modest 8% as of September 30.
Crypto and blockchain infrastructure continue to attract capital. A regulated crypto exchange completed an upsized IPO in August, pricing above its revised range and closing up 84% on debut. A blockchain-based lending and payments platform priced above its revised range and traded up 45% since pricing, as of September 30. These offerings highlight current investor interest in digital-asset infrastructure companies, due in part to potential government support of the sector.
Investor interest in AI and cybersecurity remains strong but selective. For instance, a large-scale cyber platform raised over $900 million in September, priced at the top of its revised range, and surged nearly 20% on its debut.
By contrast, the quarter also illustrated investor selectivity, particularly around private equity-backed companies with higher debt levels. A major consumer data and analytics provider priced at the lower end of its range and has traded down 25% as of September 30 as investors focused on debt paydown and margin pressure. Similarly, a well-known educational publishing and content provider priced below range and likewise struggled, trading down nearly 26% post-listing through the end of September.
A prominent secondary ticketing marketplace also priced within its indicated range but has since traded down over 28%, reflecting concerns around debt and ongoing scrutiny of its business model. Uncertainty around regulatory changes to ticket pricing, coupled with competitive pressures and softer demand, weighed on performance and showed that the market remains unforgiving for models under policy and consumer stress.
Biotech has been strikingly absent, compared to historical IPO activity levels from this sector. Since the first quarter, only one biotech IPO has priced, leaving 2025 on pace for one of the lightest biotech calendars in years. Investors remain highly selective, preferring late-stage or less risky assets.
SPAC issuance has seen a sharp resurgence in 2025. So far this year, 100 SPACs have raised over $18.7 billion. That compares to just 34 SPACs raising $5.3 billion over the same period in 2024. However, de-SPAC activity remains subdued, with only 34 de-SPACs completed year to date versus 58 during the same period last year. Those numbers suggest continued execution challenges and tighter investor scrutiny in the de-SPAC market.
Note: IPOs with deal values of less than $25 million, best efforts offerings, oil and gas royalty trusts, business development companies, pricing on OTC Bulletin Board and OTC Pink Sheets are excluded from this narrative. Data from SEC filings and third-party databases are as of September 30, 2025.
Venture capital in 2025: AI drives activity amid selective markets
At first glance, venture activity in 2025 looks resilient. Deal value and capital deployment have stabilized, and AI has become a powerful engine of growth. Yet the underlying story is one of a sharp bifurcation: Are you AI-related or not? AI now commands more than half of all deal value, while other sectors continue to face muted funding, extended time-to-exit, and valuation resets. This divergence is shaping a VC market where discipline and scale are increasingly prerequisites for raising capital.
AI dominance grows: As of September 30, AI accounted for 55% of all deal value, with the top three unicorns attracting $58 billion year-to-date compared to just $30 billion across the rest of the sector. AI companies are also enjoying a late-stage premium, with median Series D+ valuations running three times higher than non-AI peers.
Capital concentration intensifies: Dealmaking has shifted toward fewer but larger rounds. The average round size in 2025 is $18.6 million, up from $11.5 million in 2024, and the top 10 deals account for 37% of total deal value YTD, nearly double the share in 2024.
Secondary transactions gain momentum: Activity rose 22% from the 2024 fourth quarter and now represents 32% of VC exit value, reflecting growing investor appetite for liquidity even as IPOs and M&A dominate headlines. While public listings have begun to reopen selectively and M&A is being driven by large and megadeals, secondaries still account for only ~2% of aggregate unicorn valuations, underscoring their complementary role in the exit landscape.
Valuations reset but discipline improves: Down rounds are becoming normalized, with nearly every major listing pricing below peak private valuations. Notably, a leading fintech and a digital health platform went public at 64% and 63% discounts, respectively, to prior highs. At the same time, founders are sharpening their focus on efficiency and profitability to align with investor expectations.
VC-backed IPOs show signs of strength: While fewer in number, VC-backed IPOs that have launched in 2025 are performing well. The average revenue for tech IPOs this year is $831 million, with four companies surpassing the billion-dollar mark (compared to just one since 2022). Roughly 25% of this year’s IPO companies were profitable, a sharp contrast to 2021 when all 27 of the largest tech IPOs were loss-making.
AI's growing weight in the ecosystem: As of August, AI companies represent 22% of VC-backed startups but capture 44% of aggregate private market valuation. This growing share is raising exit hurdles and concentrating returns, with more capital flowing into fewer, larger players.
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