June Marks a Turning Point for Tech IPOs
After a prolonged lull, the tech IPO market showed promising signs of revival in the first half of 2025, with June standing out as a particularly strong month. The number of U.S. technology IPOs last month hit five — more than double the monthly average of two since the beginning of the year, according to recent data.
Circle's Meteoric Rise Ignites Optimism
Leading this renewed momentum was Circle Internet Group, a prominent issuer of a stablecoin, whose shares more than doubled on their debut at the New York Stock Exchange on June 5. Since then, the stock has surged nearly sixfold, boasting a market capitalization of $42 billion. Support from policy developments, such as the Senate's passage of the GENIUS Act establishing a federal framework for stablecoins, helped fuel investor confidence.
Venture capital heavyweights like General Catalyst, Breyer Capital, and Accel collectively retain an $8 billion stake in Circle, even after partial sales during the IPO. Meanwhile, other Silicon Valley giants such as Greylock, Kleiner Perkins, and Sequoia Capital are poised to benefit from Figma’s impending IPO following its recent filing — a highly anticipated event given the company’s previous acquisition agreement valued at $20 billion.
Encouraging Signs Across the Sector
Beyond Circle, another bright spot was the artificial infrastructure provider that posted strong gains following its March IPO, with stock climbing 170% in May and an additional 47% in June. These successes signal a cautious yet palpable shift in venture capital sentiment after years of tepid exit activity.
Experts note that for venture firms, IPOs are vital to delivering returns for investors, including university endowments, pension funds, and foundations. The dip in IPOs since 2021 — a year that saw a record 155 venture-backed IPOs raising $60.4 billion — has heightened pressure to generate liquidity and justify continued capital commitments.
Industry Challenges and Growing Confidence
Despite recent progress, industry veterans warn against premature celebration. The U.S. IPO market still grapples with regulatory complexities, geopolitical tensions, and market volatility. Some anticipated IPOs, like those of Klarna and StubHub, have been delayed amid uncertain conditions.
Nonetheless, the uptick in public offerings fuels cautious optimism. A notable development was the strategic investment by Meta Platforms acquiring a 49% stake in AI startup Scale AI, marking a significant liquidity event for early investors such as Accel and Index Ventures. This deal exemplifies alternative methods of generating returns while the IPO pipeline rebuilds.
Looking Ahead
Many venture capitalists believe a wave of public offerings is on the horizon, as companies with strong fundamentals prepare to test the waters. While the path forward is uneven and challenges remain, the revived IPO activity offers a much-needed injection of hope for the tech investment ecosystem.
As one seasoned investor put it, "There’s finally a light at the end of the tunnel." The coming quarters will reveal whether this tentatively optimistic momentum can evolve into a sustained market recovery.
