IPO Market Outlook 2025 | Deloitte US has been saved
By Will Braeutigam, US Capital Markets Transactions Leader, Deloitte & Touche LLP
Talking points:
- Despite early positive returns, the IPO market ended 2024 on a quiet, cautious note.
- The 2025 IPO market is poised for above-average performance, especially the life sciences sector.
- Deloitte’s free IPO SelfAssess™ tool can provide you with customized results that determines your company’s readiness to go public based on your input.
Remember the record-breaking run that IPOs had in 2021? ¹ Seems like every year since has started with optimism, only for hopes to dim.
Early last year, I told business news site Quartz I expected 2024 IPO proceeds between $30 billion and $35 billion. ² Better than 2023, but not exactly a boom. And I was almost right. IPOs raised $29.6 billion in 2024.
So where do we go from here—and how do we prepare?
From freeze to partial thaw
Although 2021’s IPO haul was an eye-popping $142.4 billion, valuations eventually fell back to earth. ³ Between that year’s negative return and inflation, investors became wary. Then came war in Europe, keeping many investors and sellers apart.
In 2023, confidence seemed to rebound with a series of high-profile IPOs, only to fizzle as the year ended. There were glimmers of hope. In 2023, the CBOE Volatility Index (VIX) settled below 20, pointing to stability. ⁴ And by December, the Federal Reserve indicated rate cuts were on the table.⁵
Caution heading into 2024
Last year kicked off with early returns. But many investors took a wait-and-see approach. While IPO activity took place across sectors, the investment community focused on those IPOs with less risk and positive cash flows.
IPO-bound companies were cautious, too. Some hesitated to file close to the US presidential election. Others focused on getting their houses in order, knowing that sustained earnings and a shorter path to profitability could help them achieve a higher market cap.
The outlook for this year
In some respects, the new year looks a lot like 2024. The economy is buoyant. The VIX has settled again below 20.⁶ The cost of capital is off its post-inflation peak. But most importantly, 2025 follows a year when the IPO market yielded a positive return for the first time since 2020.
All this considered, I expect the 2025 IPO market to be slightly above average, with capital raised in the $45 billion to $50 billion range. We could see up to 160 debuts, plus a significant bump in sponsor-backed IPOs.
The life sciences sector, in particular, is positioned for a banner year. One area that’s not? Entities without a path to profitability in the next 12 to 18 months. They may need to wait it out so long as capital is expensive and fixed-income securities remain attractive.
We’ll see how 2025 goes. Either way, we are here to advise you and your finance team as it gets ready for the public markets.
Deloitte can help.
Our complimentary IPO SelfAssess tool gives you a tailored public readiness assessment based on your input. We can guide you through your results, advise on gaps and opportunities, and help you create a roadmap for moving forward.
Endnotes
¹ Phil Mackintosh, “A record year for IPOs in 2021,” Nasdaq, January 13, 2022.
² Laura Bratton, “Tech IPOs are making a comeback,” Quartz, April 2, 2024.
³ Renaissance Capital, “2021 IPO market makes history as the busiest year in two decades,” 2021 IPO Market Review, January 3, 2022.
⁴ Cboe, “Historical data for Cboe VIX® Index and other volatility indices,” accessed December 16, 2024.
⁵ Nick Timiraos, “Fed begins pivot toward lowering rates as inflation declines,” Wall Street Journal, December 13, 2023.
⁶ Cboe, accessed December 16, 2024.
This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.
Copyright © 2025 Deloitte Development LLC. All rights reserved.
Get in touch
Will Braeutigam
US Capital Markets Transactions Leader | Deloitte & Touche LLP
Will is a Partner and serves as the US Capital Markets Transactions Leader and the Mergers, Acquisitions, and Restructuring Audit & Assurance Services Leader. In this role, he leads Accounting & Reporting Advisory (ARA) offerings related to companies seeking public capital or debt. He has extensive venture capital and private equity experience. His team has served hundreds of companies completing capital market transactions. The team focuses on helping companies meet their strategic goals and objectives in a dynamic market and ever-changing regulatory environment.
