In 2025, 51 technology initial public offerings (IPOs) launched in the US, raising a total of $16.8 billion. This represents an increase compared to the average of the preceding three years, but remains below 2021 levels when 127 tech IPOs generated $74.4 billion.
The 2025 IPOs market was influenced by companies in the artificial intelligence (AI) and cryptocurrency sectors, which accounted for a significant portion of new listings and capital raised.
AI, Crypto Drive IPOs
Dealogic data shows the average amount raised per tech IPOs in 2025 was approximately $329 million. This average is higher than the $232 million average recorded in the three years prior to 2025. This suggests that while the volume of IPOs has not fully recovered to its peak, the companies that did go public were generally larger or more mature, commanding higher valuations. The disparity between the number of IPOs and the capital raised per IPO indicates a potential shift in the types of companies making their public debuts, with a focus on those with more substantial growth prospects or established revenue streams.
The number of tech IPOs in 2025 was less than half of the 2021 total, and the total capital raised was less than a quarter of the 2021 amount. This stark contrast underscores the significant correction experienced in the technology IPO market following the exuberance of the 2020-2021 period. While 2025 saw a rebound from the subdued activity of the immediate post-peak years, it has not yet reached the stratospheric levels of the 2021 boom. This moderation in activity is likely a reflection of a more cautious investor sentiment and a more rigorous due diligence process applied to potential public offerings.
Companies involved in AI development, AI-powered services, and related infrastructure were prominent among the 2025 listings. These firms cited advancements in machine learning, large language models (LLMs), and data processing capabilities as key drivers of their growth and market potential. The demand for AI solutions across various industries, from healthcare and finance to manufacturing and retail, has created a fertile ground for innovation and investment. Companies leveraging AI to solve complex problems or enhance existing business processes were particularly attractive to investors looking for the next wave of technological disruption.
The cryptocurrency sector also saw increased IPOs activity, with companies in digital asset trading, blockchain technology, and related financial services making public market debuts. The maturation of the blockchain ecosystem and the increasing institutional adoption of digital assets have paved the way for more established crypto-native companies to seek public funding. This trend reflects a growing acceptance of cryptocurrencies and blockchain technology as legitimate asset classes and foundational technologies, respectively, despite ongoing regulatory scrutiny in many jurisdictions.
The broader economic environment, including interest rate policies and inflation concerns, influenced the timing and success of these IPOs. Higher interest rates can increase the cost of capital for companies and reduce the present value of future earnings, making IPOs less attractive. Persistent inflation can also create economic uncertainty, leading investors to adopt a more risk-averse stance. Consequently, companies that chose to go public in 2025 likely did so after careful consideration of these macroeconomic factors, aiming to capitalize on specific market windows and investor appetite for their particular sectors.
Higher Per-IPO Capital
The performance of these 2025 IPOs in the secondary market will indicate future market activity and inform decisions by other technology companies considering public offerings. A strong aftermarket performance, characterized by sustained price appreciation and healthy trading volumes, would signal investor confidence in the underlying businesses and the overall IPO market. Conversely, a weak performance could deter other potential issuers and lead to a slowdown in new listings. Investors will be closely watching metrics such as revenue growth, profitability, market share, and competitive positioning of these newly public companies.
The trend towards AI and crypto-driven IPOs suggests continued focus on these areas by venture capital and private equity investors seeking exit opportunities. These investors have been instrumental in funding the growth of many of these companies during their private stages. As these companies mature, their IPOs provide a crucial exit mechanism for early-stage investors, allowing them to realize returns on their investments and redeploy capital into new ventures. The sustained interest in AI and crypto from these sophisticated investors indicates their belief in the long-term potential of these transformative technologies.
The Dealogic data highlights dominant sectors and capitalisation scale in the US technology IPOs market for 2025, contrasting with previous years. The concentration of IPOs in AI and cryptocurrency suggests a market that is increasingly focused on disruptive technologies with high growth potential. While the overall volume may be lower than the peak, the quality and strategic importance of the companies going public appear to be increasing. This shift could lead to a more sustainable and robust IPO market in the long term, driven by genuine innovation and strong business fundamentals rather than speculative fervor.
2025 IPOs Lag 2021 Peak
The disparity between 2025 figures and the 2021 peak highlights the cyclical nature of the IPO market. While 2021 was an outlier year characterized by unprecedented market liquidity and investor enthusiasm, 2025 represents a more measured and selective approach. Companies that successfully navigated the IPO process in 2025 demonstrated resilience and a clear value proposition.
