For many entrepreneurs, taking a company public is the ultimate milestone—an opportunity to unlock liquidity, raise capital, and scale operations.
However, timing is everything. Market conditions, shaped by inflation, regulatory shifts, and geopolitical uncertainty, can make or break an IPO.
So, when is the right time to go public? Let’s break it down.
Timing the Market
1. Market Stability Matters
A volatile market makes it difficult to attract investors. The Trump administration’s new tariff policies, regulatory shifts, and inflation concerns have created uncertainty. Companies like Turo and Cerebras have pulled their IPO plans, signaling hesitation across the industry.
2. Investor Sentiment Is Key
Despite a 14% increase in IPO proceeds compared to last year, the expected IPO wave hasn’t arrived. Investors are more cautious than ever, prioritizing companies with strong profitability and revenue growth.
3. Revenue and Profitability Benchmarks Have Increased
US Investment banks now recommend $200M+ in annual revenue before a company considers going public. If a company is unprofitable, it must demonstrate strong revenue growth to appeal to public investors.
4. Alternative Liquidity Options Exist
Private markets now offer more ways to raise capital and provide liquidity to employees. Companies like Stripe, Databricks, and Plaid have used tender offers to allow shareholders to cash out without going public.
5. Regulatory and Political Stability Play a Role
Some companies, like SymphonyAI, are waiting for more clarity on economic policies before committing to an IPO. With the election results in, companies are carefully watching how new policies will impact business.
The IPO market needs strong companies to set the pace for 2025. Those that meet investor expectations and can navigate market volatility will have the best shot at success. If your business is considering an IPO, timing it right is just as critical as having a strong balance sheet.