The tech IPO market in the US showed signs of recovery in June 2025, with five offerings compared to an average of two per month since January, according to CB Insights.

This increase follows a stagnant period starting in early 2022, influenced by inflation, rising interest rates, and heightened regulatory scrutiny.

A significant IPO was Circle Internet Group, a cryptocurrency firm that debuted on the New York Stock Exchange on June 5.

Its stock price surged sixfold since the IPO, resulting in a market cap of US$42 billion. This surge was partly due to the Senate’s passage of the GENIUS Act, which established a federal framework for stablecoins.

Additional IPOs were recorded from smaller firms such as Hinge Health, valued at US$3.5 billion, Omada Health at US$1 billion, and Etoro at US$5 billion.

In contrast, major companies like SpaceX and Stripe have not announced any IPO plans.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ The IPO market recovery reveals a dramatic shift in investor preferences

Current IPO activity, while promising with five tech offerings in June, still represents a fraction of the 2021 boom when 155 U.S. venture-backed IPOs raised $60.4 billion 1.

Investor expectations have fundamentally shifted. The EY Global IPO Trends report shows a clear preference for profitable companies over growth-at-all-costs operations, with a significant increase in the percentage of profitable IPOs in Q1 2025 2.

This changing landscape explains why Circle succeeded, not just as a crypto play, but as a company with a clear value proposition and sustainable revenue model at a time when investors have become increasingly selective.

The broader tech IPO recovery is happening alongside a continued preference for private funding among the highest-valued companies, with Stripe, Databricks, and SpaceX still delaying public offerings despite the improving environment 1.

The current recovery pattern suggests we’re seeing a more disciplined market where companies need stronger fundamentals to go public compared to the easy-money era of 2021.

2️⃣ Regulatory shifts are actively reshaping the IPO landscape

Recent discussions between U.S. stock exchanges and the SEC about loosening regulations to make IPOs more enticing could significantly accelerate the market recovery 3.