A new wave of blockbuster initial public offerings (IPOs) could be on the horizon as an expanding pool of late-stage growth companies remain private longer, amassing value through secondary share sales and rising institutional interest.
“You’re winding up a coil,” said John Collmer, global head of private placements at Citigroup, describing the growing pipeline of high-calibre companies readying for public debut. “You are creating this massive backlog of quality companies that will go public.”
Speaking on the sidelines of Citigroup’s Private Company Growth Conference in New York, Collmer noted that institutional investors are becoming increasingly active in private placements, eager to tap into fast-evolving sectors such as artificial intelligence (AI), robotics, and defence tech — industries with limited representation in public markets.
Appetite for Private Tech Surges
The rebound in private funding in 2025 comes after a lull triggered by the Federal Reserve’s rate hikes in 2022, which dampened valuations and dried up liquidity across tech sectors. But with transformative technologies surging back into focus, investors are seeking pre-IPO access to future giants.
“Fifteen years ago, it was Uber that investors couldn’t touch in public markets,” Collmer said. “Today it’s AI, robotics, defence tech – and the disruptors are all still private.”
Leading the trend are names like SpaceX, OpenAI, Stripe, and Databricks, which have used secondary stock sales to unlock liquidity for employees and early backers. The private secondary market has swelled to US$60 billion, up from US$50 billion in 2024, according to Pitchbook.
In one recent deal, fintech startup Ramp Business allowed early stakeholders to sell US$150 million worth of shares in a transaction that valued the company at US$13 billion.
Early Signs of IPO Activity
Despite the secondary boom, public listings remain an eventual goal. According to Cully Davis, Citigroup’s head of growth equity, there are signs that growth IPOs may be returning.
“One indicator is the recent burst of convertible bond sales by listed tech companies,” Davis explained. “That market has opened up dramatically in the last six weeks — and that’s a very positive sign.”
Beyond raising capital, a public listing can be strategically advantageous, especially in mergers and acquisitions.
“It helps to have a publicly traded, liquid, and independently valued currency,” Davis added. “That gives companies real leverage in acquisitions and expansion.”
Keeping the Door Open
Among the rising stars in the private tech space is Kore.ai, an AI software firm and Citigroup client. The company, valued at US$800 million following a US$150 million investment round in 2023 (which included Nvidia), is keeping its IPO options open.
“We’re still evaluating the right growth path,” said DK Sharma, chief operating officer of Kore.ai. “It might be an acquisition, or it might be an IPO — but for now, our focus is building strength and scale on top of our current momentum.”
As secondary markets thrive, the pipeline of IPO-ready companies is only getting deeper — and when the public market window opens fully, investors could see a flurry of tech listings not seen since the post-pandemic boom.
“The coil is winding,” Collmer said. “It’s only a matter of time before it springs.”
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