Tech IPOs Are Back: Why 2025 Signals a New Era for Innovation

After nearly two years of muted activity, 2025 has brought a decisive comeback for technology IPOs. The slowdown that began in late 2021—driven by inflation, sharp rate hikes and investor risk aversion—now appears to be ending.

The numbers tell a compelling story. In the first half of 2025, the U.S. recorded 109 IPO completions, marking the strongest six-month performance since the historic 2021 peak. Total IPO proceeds across the Americas grew 56% year-over-year in H1 2025, according to PwC Global IPO Watch. More tellingly, the technology, media and telecommunications sector accounted for about half of proceeds from U.S. IPOs raising over $500 million, underscoring its renewed role as the market’s growth engine (EY Global IPO Trends Q2 2025).

Notable activity spans artificial intelligence infrastructure (CoreWeave), digital assets and stablecoins (Circle, Bullish) and cybersecurity solutions (Netskope), reflecting the breadth of investor interest across technology verticals (Reuters; WSJ; Bloomberg).

Yet this recovery is markedly different from previous cycles. Today’s IPO market rewards discipline over disruption. Investors are gravitating toward companies with demonstrated revenue growth, clear paths to profitability and battle-tested business models.

The message is clear: the IPO window is reopening, but entry requirements have never been higher. For companies that can demonstrate both innovation and execution, 2025 may mark the beginning of a more sustainable, quality-driven public market renaissance.

For much of 2022 and 2023, the tech IPO market was largely frozen. Inflation, higher interest rates and geopolitical uncertainty amongst other reasons kept investors from backing ambitious firms, pushing many companies to stay private.

By 2025, conditions appear to have improved. Advances in areas such as artificial intelligence, cloud infrastructure and enterprise software have lifted growth expectations and renewed appetite for innovative businesses. Still, investors remain cautious: valuations face closer scrutiny, profitability and cash flow are paramount and regulatory pushback, from AI oversight to antitrust and data privacy, adds uncertainty. The IPO window has reopened, but entry is far more selective.

As Morgan Stanley summarized in its mid-year outlook A Comeback for IPOs and Equity Capital Markets (July 29, 2025):
“In the last several years, especially post-COVID-19 in 2022 and 2023, IPO activity has been more muted as higher interest rates resulted in lower company valuations and stock prices. Once inflation moderated and central banks began cutting rates, the IPO market showed signs of reactivation…”

This perspective highlights that today’s IPO revival is part of a gradual recovery, driven by improving market sentiment after several years of muted activity.

The most eye-catching debut of the year came from Figma, the collaborative design platform used by startups and Fortune 500s alike. Shares priced at $33 and closed up ~250% on the first day (after opening at $85 and touching nearly $120 intraday), making it the largest U.S. venture-backed tech IPO since Rivian in 2021 (WSJ, Reuters).

Figma’s performance did more than generate headlines. It sent a powerful signal to founders, venture capitalists and institutional investors: the market is ready again for growth, for bold bets and for innovation.

Figma is not alone. Other high-profile names have moved toward or onto the public stage in 2025:

• Netskope, a leader in cloud security, filed to go public in August and is expected to list soon, reflecting robust demand for enterprise cybersecurity (Reuters).
• Circle, the issuer of the USDC stablecoin, priced its upsized IPO at $31 per share in June, raising about $1.05 billion, and began trading on the NYSE, highlighting how regulated digital-asset infrastructure is moving into the financial mainstream (CoinDesk).
• CoreWeave, an AI-focused cloud infrastructure provider, priced its IPO at $40 on March 27, tapping into surging demand for compute power that underpins the generative AI boom (MarketWatch).

Together these deals underscore the diversity of the tech market today, spanning software, infrastructure, security and digital finance. Each reflects a larger story: technology is not just rebounding, it is potentially redefining markets.

The return of major IPOs may carry broader implications:

• Investor sentiment improving: Public markets are showing more openness to scalable growth stories, particularly in areas aligned with structural themes such as AI and digital infrastructure, though selectivity remains high.
• Potentially stronger exit pathways: With the IPO window showing signs of reopening, venture investors may have clearer routes to liquidity, creating opportunities to recycle capital into the next cohort of startups.
• Focus on infrastructure: Recent listings suggest the critical role of data centers, chips and cloud platforms, the foundations that enable next-generation technology.
  
• Global participation: The trend is not limited to Silicon Valley. Innovation hubs from New York to Cayman are contributing to what comes next.

The resurgence of the IPO market is not just a U.S. story. The Cayman Islands is part of the wave. In August, Bullish, a digital asset exchange, became one of the few U.S.-listed crypto exchanges. The debut was remarkable: shares priced at $37, opened at $90, peaked near $118, and closed around $68–$70 on day one, valuing the company at roughly $10–$11 billion by the close (Bloomberg; Reuters).

Just as notable was the process itself: Bullish accepted a substantial portion of its IPO proceeds in stablecoins, totaling about $1.15 billion, largely in USDC, a landmark move that showed how digital assets are becoming embedded in traditional capital markets (Bullish).

With its headquarters in the Cayman Islands and leadership on the NYSE floor in New York, Bullish’s IPO was more than a milestone for the company. It underscored that Cayman is not a bystander in this new era of technology IPOs. It is a launchpad for globally ambitious firms and a proving ground for the next generation of financial innovation.

As Michael Padarin, corporate partner at Carey Olsen, observed following Bullish’s landmark NYSE debut:

“Significant interest in the listing and other recent peer listings highlights the continued growth of the digital assets industry and increasing institutional appetite for exposure to this sector.” (Cayman Compass)

The gradual return of tech IPOs in 2025 signals more than just market stabilization – it reflects a measured shift as investors, founders and innovators begin to embrace new growth opportunities after years of caution.

For jurisdictions like the Cayman Islands, this presents renewed potential as global markets seek reliable infrastructure and credibility. The success of Bullish is a marker of what is possible: Cayman companies can play on the world’s biggest stage, shaping the future of technology alongside the industry’s global leaders.

Disclaimer
This article is provided for informational purposes only and does not constitute investment, legal, tax, or financial advice. References to specific companies or IPOs are for illustrative purposes and should not be interpreted as endorsements or recommendations. Readers should conduct their own research and consult professional advisors before making investment or business decisions. Information is based on publicly available sources as of August 2025 and may change.

References

Bullish Image Source - https://www.reuters.com/technology/

EY Global IPO Trends Q2 2025 - 109 IPOs in H1 2025: https://www.ey.com/en_gl/newsroom/2025/07/h1-2025-global-ipo-activity-shows-resilience-amid-market-volatility

PwC Global IPO Watch H1 2025 - $27.5 billion in Americas proceeds (56% increase): https://www.pwc.co.uk/services/audit/insights/global-ipo-watch.html

Reuters — Strong market debuts raise questions over cautious IPO pricing by Wall St banks: https://www.reuters.com/business/finance/strong-market-debuts-raise-questions-over-cautious-ipo-pricing-by-wall-st-banks-2025-08-21/

WSJ — Figma is largest VC-backed American tech IPO since Rivian: https://www.wsj.com/articles/figma-is-largest-vc-backed-american-tech-company-ipo-in-years-a143c9c5?

Reuters — Netskope files IPO: https://www.reuters.com/technology/cybersecurity-firm-netskope-reveals-31-revenue-surge-us-ipo-filing-2025-08-22/

CoinDesk — Circle shares debut on NYSE: https://www.coindesk.com/markets/2025/06/05/circle-shares-open-at-69-on-nyse-debut-signaling-strong-appetite-for-stablecoin-issuers?

MarketWatch — CoreWeave’s stock debut: https://www.marketwatch.com/story/coreweaves-stock-gets-jeered-in-its-wall-street-debut-11d32b17?

Bloomberg — Bullish surges 143% in NYSE debut: https://www.bloomberg.com/news/articles/2025-08-13/crypto-firm-bullish-surges-143-in-debut-after-1-1-billion-ipo?

Reuters — Bullish valued nearly $13.2B in blowout NYSE debut: https://www.reuters.com/business/finance/crypto-exchange-bullish-valued-nearly-132-billion-blowout-nyse-debut-2025-08-13/

Bullish — IPO proceeds in stablecoins: https://bullish.com/news-insights/news/bullish-receives-1-15bn-of-ipo-proceeds-in-stablecoins/

Morgan Stanley – A Comeback for IPOs and Equity Capital Markets: https://www.morganstanley.com/insights/articles/ipo-outlook-2025

Cayman Compass – Carey Olsen advised on Bullish launch on NY Stock Exchange: https://www.caymancompass.com/2025/08/17/carey-olsen-advised-on-bullish-launch-on-ny-stock-exchange/