In 2024, nine U.S.-based venture-backed companies went public with valuations over a billion dollars, slightly fewer than in 2023. Despite this, the largest IPOs across various sectors, including biotechnology and tech, have generally performed well. ServiceTitan's strong debut is seen as a positive indicator for other private companies considering going public, as it demonstrates the potential for unlocking value and gaining credibility in the public markets.
Key takeaways:
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- The IPO market is expected to improve in 2025, driven by increased market confidence and a focus on growth, especially in the tech sector.
- High-profile companies like Klarna and Cerebras Systems are anticipated to go public in 2025, signaling a broader trend of tech companies testing public markets.
- ServiceTitan's successful IPO in December 2024, with a 42% increase above its IPO price, serves as a positive indicator for the public markets.
- Going public is seen as a way to unlock unrealized value for companies, providing benefits such as increased credibility and easier access to capital.