German clean energy startup, 1Komma5, has postponed its plans for a Nasdaq initial public offering (IPO) originally scheduled for 2025.

The company cited market volatility and recent tariff policies as reasons for this decision.

The German clean energy startup, valued at over US$1 billion, is reassessing its listing strategy due to global economic uncertainty.

CEO Philipp Schroeder said US trade policies and market instability have impacted the company’s IPO timeline.

This decision aligns with a broader trend among European tech firms reconsidering US listings.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ European tech has historically challenged US IPO dominance despite common perceptions

The current shift away from US listings by European unicorns like 1Komma5 Grad and Klarna aligns with long-term European market strengths that often go unrecognized.

Europe has consistently outpaced the US in the number of tech IPOs since 2014, producing more public tech companies for six consecutive years according to industry research 1.

The London Stock Exchange’s note reveals a sobering reality for companies lured by US markets: of 20 British companies listing in the US since 2014 that raised at least $100 million, nine eventually delisted and seven trade down by an average of 85% 2.

European tech IPOs have shown stronger aftermarket performance in certain periods, with 2019 European listings up 18% compared to US tech IPOs down 6% in the same timeframe 1.

This suggests the traditional narrative of US markets offering superior outcomes for European tech companies deserves significant reconsideration, even before the current tariff uncertainties.

2️⃣ Different capital efficiency models reflect fundamental transatlantic market differences

European tech company valuations and capital strategies have developed differently than their US counterparts, creating distinct advantages and challenges.

European startups operate with higher capital efficiency, raising average financing rounds of €3.5 million compared to €5.2 million in the US (approximately 50% smaller), which drives more disciplined growth strategies 3.