Don’t Ignore IPO Readiness Work in Times of Market Uncertainty
Over the past five years, the venture-backed exit environment has suffered from what PitchBook analysts have called the “Goldilocks” problem in their latest report — too hot, then too cold, and never just quite right. During the zero-interest-rate-policy era, capital was cheap, valuations skyrocketed, and IPOs were abundant, even for companies with unproven business models. But since interest rates began climbing in 2022, the IPO market has chilled considerably. Startups that were once spoiled for choice have since found themselves sitting on the sidelines, unwilling to accept down rounds, and waiting for the return of better market conditions.
Market watchers, including those at PitchBook and Dealogic, were mildly optimistic for a more favorable IPO market in 2025 — the return of a “just right” moment when capital markets would stabilize, investor appetite would return, and liquidity-starved startups could finally deliver the exits their backers needed. That optimism, however, seems to have been short-lived.
Uncertainty and turbulence — most recently stemming from the market-spooking effect of President Donald Trump’s tariff policy — has thrown a wrench into an already fragile market. His April 2 announcement of reciprocal tariffs triggered a sharp downward slide: some public companies lost over a year’s worth of gains within days, and the S&P 500 Volatility Index (VIX) spiked from 20 to nearly 50. The resulting uncertainty has rippled across both public and private markets, affecting many VC-backed companies with plans to go public in 2025.
Several high-profile firms, including Klarna, Chime, eToro, MNTN, and StubHub, have since paused their long-awaited IPO plans—citing a range of obstacles from market volatility to a lack of investor confidence. It seems that a temporary 90-day pause in U.S. tariff enforcement has done little to restore certainty, with fears of further economic shocks and a looming recession clouding the horizon.
This stop-start environment has left many startups in limbo. Companies fear testing the markets given the turbulent environment, and with each passing quarter, the risk grows that the long-awaited IPO window will be too late for many companies, once it does finally come.
Despite this dark backdrop, however, there is a way forward. In our many years of advising emerging-market companies pursuing ambitious listings — on both domestic exchanges and major international bourses such as the London Stock Exchange and NASDAQ — we’ve consistently seen one thing hold true: companies with a long runway to prepare for an IPO always come out ahead.
Those that started early, took the time to calmly prepare their operations and communications, and didn’t rush when the opportunity finally presented itself were far better positioned than their peers. These companies achieved stronger valuations, generated more demand for their shares, and ultimately delivered more successful public debuts than their peers who waited in the wings and instead tried to fast-track the process once the IPO window was finally open.
The difference came down to discipline, strategy, and adherence to best practices in IPO readiness. We believe that the most critical of these include:
- Strategic clarity and differentiation
Working with seasoned communications professionals to articulate a clear, compelling growth story backed by strong fundamentals and a clear vision for the future is key. Companies that were able to distill their purpose, differentiation, and market opportunity into a clear and exciting investor narrative won the IPO game.
- Team readiness and education
Preparing internal teams — particularly in finance, corporate communications and investor relations — to operate at the level expected of a public company was essential. This includes training in disclosure obligations, earnings calls, and regulatory timelines. Understanding and implementing strong governance practices with a clear understanding of compliance obligations was also an important part of this work.
- Investor communications infrastructure
The best-prepared companies didn’t wait until after listing to start acting like public companies. They began establishing relationships with analysts and potential investors, communicated consistently, and practiced the cadence of public disclosure well in advance.
- Global brand visibility
For emerging-markets companies listing internationally, name recognition and credibility in global business media were invaluable. Those who invested in telling their story early and often were better received both on and immediately following listing day.
- ESG integration
Despite the recent backlash against greenwashing and DEI initiatives, which might be just box ticking exercises for some, environmental, social, and governance issues remain front-of-mind for institutional investors. Companies that embedded ESG into their strategy and reporting early rather than as an afterthought enjoyed stronger demand from blue chip investors.
In volatile markets, IPO windows can be short and unpredictable. The companies that thrive aren’t the ones who wait for certainty — they’re the ones that put in the hard and meticulous work to prepare in advance, so they can move quickly and confidently when the timing is right.