"But the hoped-for rising tide of exits did not come to lift all boats. Some IPOs, like Navan, met with more muted reception. As 2026 gets underway, the fundamental circumstances that influence private market exits are largely the same: Private companies are bigger than ever by valuation, but they also have more liquidity levers than ever to pull without needing to tap the public markets. But that privilege is reserved for the very best of breed."
"Further down the private company food chain, things are more complicated. Even for some promising AI startups, an acquihire to a giant is proving far more appealing than going at it alone. Which means acquisitions and other creative variations of dealmaking are also very much in play. IPOs IPO momentum will extend into early 2026, then slow. Right now, public equities are exceptionally strong, with high investor receptivity to tech, robust liquidity, and strong volume."
2025 included high-profile public listings and large M&A transactions, but exit gains were uneven and overall IPO activity remained below historical norms. Many private companies now hold larger valuations and enjoy alternative liquidity options that reduce immediate pressure to go public, a benefit mainly available to top-tier firms. Mid-tier and smaller companies face more complex choices, with acquihires and creative acquisition structures attractive even for promising AI startups. Early 2026 is poised to carry IPO momentum from 2025, supported by strong public equities, liquidity, and backlog demand, but the public window may narrow, and institutional investors will remain selective.
Read at Fortune
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