Startup IPO boom gives early backers grand exit
The startup IPO boom in 2025 is providing early backers with a grand exit, turning their initial risks into major rewards. Investors like Peak XV Partners, formerly Sequoia India and Southeast Asia, have seen returns as high as 40 times their investments in companies like Pine Labs and Groww. This trend marks a significant shift where IPOs are becoming the dominant mode of exit for venture capitalists, signaling maturity and confidence in the startup ecosystem especially in emerging markets like India. The buzz around IPOs is not just about new listings but about a lucrative liquidity event for investors who backed startups in their nascent stages.
This vibrant IPO activity comes amid a global surge, with 2025 seeing close to 200 IPOs and proceeds exceeding $35 billion, a healthy increase from previous years. With major tech and new-age companies tapping public markets, the appetite for growth is fueling record-high IPOs. Distinguished investors are cashing out substantial stakes, sometimes holding reduced but still significant shares post-IPO, reflecting a balanced exit strategy that finances growth while rewarding early supporters. This trend aligns with global data showing increased filings and capital raised, as well as robust investor confidence, even as markets navigate uncertainties. The scenario highlights IPOs as a critical milestone not just for companies but also for the entire investment ecosystem.
