Cartoon: Trying to exit
“Trying to exit” by Iantoons
This new cartoon illustrates how the last four years have been particularly challenging for private companies trying to go public on the stock market – otherwise known as going through an initial public offering (IPO).
In terms of capital raised and number of IPOs, 2021 stands out. Approximately 2,040 companies went public in that year, resulting in $841 billion of capital raised in the US, driven by a surge in tech companies. Some of the big IPOs of 2021 included UiPath, Rivian, and Coinbase.
In 2024, there were 1,249 exits resulting in $149 billion of capital raised.
While 2021 was an anomaly compared to prior years, the number of private companies that have been building up since 2021 is creating a significant backlog of unlocked value. According to a Pitchbook-NVCA report, the total value of privately held unicorns is now $2.7 trillion, which is roughly the size of the GDP of France.
Many private companies have spent the last couple of years focusing on profitability, trying to get to over $100 million in revenue and growing at 25% annually. What might help unleash this wave of exits is the change in US administration. President Trump’s picks for some of the key regulatory agencies may help make a better dealmaking environment compared to the Biden administration.
Overall, the success of the IPO market in 2025 will hinge on the performance of the first movers.
A successful start will boost valuations, unlock liquidity for investors, and encourage more companies to go public.
You can find more Iantoons cartoons here.