While the public markets have been experiencing a spectacular year, with the S&P 500 up about 22%, the performance has been uneven, with larger cap companies driving the gains while smaller companies struggle.
Public Market Performance
Many venture investors and their LPs were hoping for a resurgence in IPOs in 2024, but that hasn't happened and is unlikely to occur in the next two months.
IPO Market Stagnation
NASDAQ CEO Adena Friedman isn't surprised by the lack of IPO activity, citing factors like the cost of capital environment and companies' need to demonstrate strong financial performance before going public.
NASDAQ CEO's Perspective
Friedman believes IPOs will start to return with momentum in 2025, though she notes some recent biotech IPOs have shown investor appetite for younger companies.
Outlook for 2025