Tariff tensions shake up VC exit outlook
A turbulent start to 2025 has cast a shadow over the venture-backed IPO market. With tariff-related uncertainty rattling public markets and the VIX Index spiking, several high-profile startups—including Klarna, Chime, and StubHub—have paused IPO plans. Our latest analyst note explores how prolonged volatility, weaker investor appetite, and rising recession fears have dented IPO prospects for the rest of the year.
Even as some companies eye debt as a stopgap, the broader VC ecosystem faces tough trade-offs: accept down rounds, pursue structured equity, or wait out the storm. We have revised our IPO outlook for 2025 downward, now expecting only marginal improvement from 2024 levels.