[Spark VC Weekly Insight] Tech IPO Window Reopens – What This Means for Startup Valuations

IPO Momentum Returns

In recent weeks, the U.S. capital markets have witnessed a notable recovery in appetite for growth-oriented technology companies. Two high-profile IPOs—IronNet AI, a cloud-based cybersecurity SaaS provider, and LoopCompute, an AI infrastructure hardware company—priced above range and sustained strong aftermarket performance. The Nasdaq Composite Index rose 4.3% in two weeks, driven largely by tech-led investor optimism.

This signals that the IPO window, which had largely remained shut since late 2022, is gradually reopening. For startups and venture capitalists alike, this represents a long-awaited signal that public market liquidity—and a key exit path—is returning.

What This Means for Late-stage Valuation

Founders and investors should expect the return of stricter pricing discipline. In the post-2021 cycle, public market investors prioritize sustainable growth, revenue quality, and cost-efficiency over inflated “topline stories.” Metrics like gross margin, net dollar retention (NDR), and EBITDA visibility will increasingly shape valuations.

Exit Options Widen Again

The return of the IPO pathway doesn't just affect late-stage companies. It reshapes the entire VC cycle. For example:

• M&A negotiation dynamics will shift as IPO alternatives reintroduce competition.

• Series C+ rounds may get priced more favorably, reducing down-round pressure.

• Fundraising timelines may compress for teams building in hot verticals (AI, infra, security).

At Spark VC, we see this as a transition moment—not a full-scale recovery, but a window of rebalancing. We encourage founders to:

• Build dual-track readiness (M&A + IPO)

• Avoid short-term hype—momentum can fade quickly

• Invest in investor relations—communicating metrics is a CEO skill