The 2025 U.S. market for initial public offerings (IPOs) ended below expectations, as crypto and artificial intelligence (AI) companies failed to keep pace with broader equity indices. Data compiled by Bloomberg showed that all companies listing publicly in 2025, excluding blank-check firms and closed-end funds, posted a weighted average gain of 13.9%, while the S&P 500 Index rose 16% over the same period.
A mixed year for IPOs amid shifting investor sentiment
“2025 was a distinctly mixed year for IPOs,” said Mike Bellin, U.S. IPO leader at PwC, in comments reported by Bloomberg. He added that “the market reopened, but it did so selectively,” as investors became more cautious with pre-profit startups and demanded stronger fundamentals.
Medium-sized IPOs with valuations between US$500 million and US$1 billion recorded only a 5.6% weighted average gain, far below the 20% average increase achieved by deals above US$1 billion. The year was characterized by investors prioritizing financial discipline and measurable performance over aggressive growth stories.
Crypto listings struggled despite early enthusiasm
2025 featured several high-profile crypto IPOs following renewed optimism among digital asset companies and backing from Wall Street. Yet performance diverged sharply across issuers.
One of the most watched entries was Circle Internet Group (CRCL), which priced its IPO at $31 per share in June and raised US$1.05 billion. The stock surged 170% on its first day of trading but later cooled as Bitcoin fell from an October peak. Circle closed at $84.8 on January 5, down from its early highs near $263.
The Winklevoss twins’ exchange Gemini (GEMI) fared worse. Listed in September at $28, the stock initially rose above $32.50 but closed the year at $9.92, representing a 64.5% drop. It has since hovered slightly above $11. Crypto exchange Bullish (BLSH), which debuted in August, opened at $37 and briefly rallied to $68, before losing momentum and ending 2025 around $37.87—barely above its initial offering price.
The ongoing decline of digital asset volumes and regulatory uncertainty were cited as major factors behind the uneven results.
AI ventures faced valuation pressure
AI-related IPOs also faced turbulence as an oversupply of new listings met a more cautious marketplace. Data center developer Fermi Inc. raised US$785 million despite limited operational history or confirmed customers. Its stock fell 58% after announcing the loss of its first major tenant in December.
Expense management platform Navan Inc., backed by several venture investors, launched a US$923 million IPO in October. Its shares have dropped 35% amid investor concerns about profitability and unclear margins. Meanwhile, CoreWeave Inc., a cloud infrastructure provider focused on AI, defied the trend with a 98% rise since its US$1.57 billion listing, supported by stronger revenue performance and cost control.
Large offerings dominated by established players
The largest IPOs of 2025 came from established sectors rather than newer technologies. Medline Inc., a medical equipment supplier, led the year with a US$7.2 billion offering. Its stock gained 40% from its December listing, bolstered by steady cash flow and recurring health-care demand. Gas exporter Venture Global Inc., however, suffered one of the steepest declines. After cutting its IPO price range by more than 40% before debut, its stock dropped 72% through year-end, hurt by a contract dispute with BP plc over liquefied natural gas cargoes.
Investors return to fundamentals
“The biggest takeaway is that we’re firmly back in a fundamentals-driven market,” said PwC’s Bellin. “Investors have become far more selective, and companies must enter the market with a sharper story and stronger operational direction.”
That sentiment captures the broader theme across 2025: speculative bets on crypto and unproven AI models no longer guarantee strong post-IPO performance. While companies like Circle and CoreWeave enjoyed initial surges, sustained gains depended heavily on revenue stability and clarity of execution.
According to Bloomberg data, the divergence between high-growth narratives and fundamentals-driven firms may continue into 2026, with market observers suggesting that only companies demonstrating resilient cash generation will attract lasting investor confidence.
Anastasiia G
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