The IPO window has been largely closed since 2022. Only 12 venture-backed companies went public in the US in 2026, and most traded down. The pipeline for 2027 is stronger: Stripe, Databricks, Klaviyo (already public but worth watching), and several others have been preparing. The question is whether market conditions will support new issues.
Analysts are cautiously optimistic. A potential Fed rate cut in early 2027 could improve risk appetite. The Nasdaq has recovered from 2022 lows. But volatility remains, and the bar for IPO readiness has risen—companies need $100M+ ARR, strong growth, and clear profitability path.
Companies to Watch
Stripe: rumored to be targeting 2027. Databricks: strong candidate if the window opens. Canva: Australian company, could list in US or ASX. Anduril: defense tech, different profile. Several fintech and SaaS companies are in the pipeline.
The success of early 2027 IPOs will set the tone. If Stripe or Databricks goes public and trades well, others will follow. If they struggle or delay, the window could stay shut. The last successful wave was 2020–2021; we’re now 5 years into a drought. Patience is running thin for companies that have been private for 10+ years.
What Would Open the Window
Sustained market rally, successful IPOs from 2–3 marquee names, and improved sentiment on tech valuations. One or two failed IPOs could close it again. For more on liquidity options, see our secondary markets analysis.
Preparing for an Uncertain IPO Window
Companies that might IPO in 2027 should: maintain IPO-ready financials and governance, build relationships with bankers and institutional investors, and have a Plan B (M&A, secondary, or extended private life). The window can open and close quickly—being ready matters. Companies that have been preparing for years (Stripe, Databricks) will be first in line when conditions improve.
Founder Implications: Founders shouldn’t bank on 2027 IPOs. Plan for extended private company life. The exit landscape remains uncertain. For everyone else, patience and optionality are key. The 12 venture-backed IPOs in 2026 (most of which traded down) suggest the bar remains high. $100M+ ARR, strong growth, and clear profitability path are table stakes.
What would open the window: sustained market rally, successful IPOs from 2–3 marquee names, improved sentiment on tech valuations. One or two failed IPOs could close it again. Stripe and Databricks are rumored to be targeting 2027. Canva could list in US or ASX. Anduril has a different profile as defense tech. Build relationships with bankers and institutional investors. Have a Plan B: M&A, secondary, or extended private life. The window can open and close quickly.
What This Means for Founders and Fund Managers
The fundraising environment in late 2026 demands a fundamentally different approach from both founders and fund managers. According to PitchBook’s Q3 2026 report, median time-to-close for Series A rounds increased from 4.5 months to 7.2 months, while the number of meetings required before a term sheet doubled from an average of 12 to 24. This elongated timeline means founders need at least 9-12 months of runway before starting their raise — a significant shift from the 2021 era when companies could close rounds in weeks.
Fund managers face their own challenges. LP commitment cycles have lengthened from 6 months to 14 months on average, and first-time fund managers are seeing close rates drop to 15% from 25% in 2022. The surviving strategy: demonstrate clear portfolio value creation, not just IRR projections. Funds that can show portfolio revenue growth of 2-3x, improving unit economics, and clear paths to profitability are still oversubscribed. The rest are struggling. As Startup Nerve has documented, the startup ecosystem is adapting to this new reality with more capital-efficient business models.
Looking ahead to 2027, the consensus among top VCs is cautious optimism. Dry powder remains at record levels ($311 billion per Preqin), suggesting that capital will deploy — but selectively. The winners will be companies with proven product-market fit, strong unit economics, and AI-native business models that demonstrate genuine efficiency gains. For analysis of which AI sectors are attracting the most investment, see Next Disruption’s coverage of the AI investment landscape.
Dive deeper: This article is part of our comprehensive guide — Startup Exit Strategies: IPO, M&A and Beyond.