What if the IPO is Too Late?: Analyzing the Returns of the 2025 Tech IPO Class

2025 will be remembered as the year the IPO window reopened after a multi-year slowdown. Several mature Unicorn companies — from AI powerhouse CoreWeave to design software darling Figma — finally made their public market debuts. For over a decade, investors watched these giants achieve staggering valuations privately. 

For decades, the Initial Public Offering (IPO) was seen as the starting line for investment growth. It was the moment an innovative company "arrived," giving everyday investors their first chance to share in its success. But as companies stay private longer than ever before¹, a critical question has emerged: is the real growth story over by the time the opening bell rings?

The Shift: Value Creation Moves to the Private Markets

The 2025 IPO class is a proof point of a fundamental market shift. These companies didn't go public to fund their growth - in many cases they raised relatively modest amounts of capital in their IPOs. Instead, they went public to provide liquidity after their hyper-growth was already well underway. 2025 IPOs offered 5% fewer shares from the companies themselves versus existing shareholders.² This is because they had already scaled, dominated or created new markets, and achieved massive valuations entirely within the private sphere.

This analysis dissects investment returns for these companies. We compare the returns generated in their final years as private companies against their performance since going public to answer a critical question: in this new era, where are the most significant returns made?

Our Methodology

• Pre-IPO Return: We measured the return from a company's Series E funding round valuation to its current public market valuation. Why the Series E? This is the most common stage at which investors on EquityZen’s platform invest in private technology companies.³ 

• Post-IPO Return: We measured the stock's performance from its IPO price and opening trade to its price as of September 28th, 2025.

The Verdict: The Private Market is the Main Event

When you chart the performance across these companies, the story becomes clear. The vast majority of the wealth creation for the 2025 IPO class happened before they ever rang the opening bell.

Return by Stage

While public market investors have seen strong gains for some companies, particularly with CoreWeave and Circle, the consistent majority of returns are happening pre-IPO. This exemplifies how the late stage private market represents a distinct and powerful period of value appreciation that public market investors largely miss out on. 

The Venture-Backed Tech IPOs of 2025

1. CoreWeave (NASDAQ: CRWV)

The AI infrastructure provider's Q1 IPO was one the most anticipated debuts of the year, fueled by the insatiable demand for all things AI.

Valuation History:

• Series C Valuation (Last Private Funding Round, 2024): $19 billion⁵
• IPO Valuation (March 2025): $23 billion
• Opening Trade Valuation: $16.9 billion
• Current Market Cap (Sept 2025): $59.8 billion

The Returns:

• Pre-IPO Return: +214%. Series C investors are sitting on strong gains, based on where the stock is currently trading.
• IPO Return (YTD): +160%. IPO investors in CoreWeave achieved one of the highest returns of any IPO this year.
• Post IPO Return (YTD): +252%. Coreweave’s stock traded below its IPO price at the open. This enabled even stronger returns for post-IPO investors.

2. Circle (NYSE: CRCL)

As a leading stablecoin provider and critical infrastructure player for the digital asset economy, Circle's Q2 IPO was the first crypto IPO since Coinbase in 2021.  

Valuation History:

• Series E Valuation (2021): $3.5 billion⁶
• IPO Valuation (June 2025): $8 billion
• Opening Trade Valuation: $16.5 billion
• Current Market Cap (Sept 2025): $30.8 billion
  

The Returns:

• Pre-IPO Return: +780%. Series E investors have achieved massive returns, given the growth of the stock and the crypto market more broadly.
• IPO Return: +285%. IPO investors did not miss out on strong returns after the company was warmly received in the public market.
• Post-IPO Return (YTD): +86%. As one of the top IPO performers in 2025, investors at Circle’s opening price are still seeing strong returns, though less than those achieved by pre-IPO investors.
  

3. Figma (NYSE: FIG)

After its planned acquisition by Adobe was blocked in 2023, the design software leader went public in a landmark Q3 IPO, proving its leadership in the enterprise Software-as-a-Service (SaaS) market.

Valuation History:

• Series E Valuation (2021): $10 billion⁷
• IPO Valuation (July 2025): $19.3 billion
• Opening Trade Valuation: $42.5 billion
• Current Market Cap (Sept 2025): $25.8 billion

The Returns:

• Pre-IPO Return: An incredible +158% from its 2021 valuation to its current price.
• IPO Return (YTD): +33%. A solid performance, but a fraction of the pre-IPO investors saw.
• Post-IPO Return (YTD): -39%. Investors who bought at the open experienced a sizable loss based on where the stock is trading today.

4. Klarna (NYSE: KLAR)

The "Buy Now, Pay Later" giant's journey to the public market in Q3 was a testament to its focus on both growth and profitability, which paid off with a successful listing.

Valuation History:

• Series E Valuation (2015): $2.25 billion⁸
• IPO Valuation (September 2025): $15 billion
• Opening Trade Valuation: $18.7 billion
• Current Market Cap (September 2025): $14.5 billion

The Returns:

• Pre-IPO Return: A staggering +544% from its 2015 valuation, rewarding private investors who backed its strategic shift.
• IPO Return: -3%. Despite an initial pop, Klarna’s post-IPO performance has not held up in the public market
• Post-IPO Return (YTD): -22.5%. Investors at Klarna’s opening price fared even worse, with shares trading down notably from where they opened in the public market.

5. Netskope (NASDAQ: NSKP)

The cybersecurity leader capitalized on the demand for cloud security with a strong Q3 IPO, establishing itself as leader in the market.

Valuation History:

• Series E Valuation (2017): $525 million⁹
• IPO Valuation (Sept 2025)¹⁰: $7.3 billion
• Opening Trade Valuation: $8.6 billion
• Current Market Cap (Sept 2025): $9 billion

The Returns:

• Pre-IPO Return: +1614% . Patience paid off for Series E investors, given the company’s valuation growing from that 2017 round.
• IPO Return: +23%. Investors in Netskope’s IPO have seen strong performance in the short time the company has been public.
• Post-IPO Return (YTD): +4%. Meanwhile, investors who purchased at the stock’s open have achieved less of return so far.

Key Takeaways for Accredited Investors

1. The Growth Curve Has Moved: The IPO is no longer the primary entry point for high-growth investing. The playing field, and growth equity returns, have shifted pre-IPO.

2. Access Unlocks Opportunity: Participating in this pre-IPO growth requires access. Secondary marketplaces like EquityZen enable accredited investors to gain exposure to proven, late-stage companies before they hit the public exchanges.

3. Risk and Reward: While the potential returns are compelling, pre-IPO investing carries unique risks, including illiquidity and the uncertainty of an exit. A diversified approach across multiple private companies is crucial.

The IPO is no longer the starting line for growth; it's a liquidity event that often marks the end of the hyper-growth phase. Analysis from Andreessen Horowitz found that there are less than five public companies expected to grow at a rate greater than 30% in 2026 versus over 100 Series B or later rounds with growth rates well beyond this.¹¹ Coupled with performance for the IPO class of 2025 this suggests that to capture the transformative potential of tomorrow's leaders, you may need to invest before they become household names. Access to the private market is the new strategic edge, and available to accredited investors now through EquityZen. 

Ready to explore the pre-IPO asset class? Sign up on EquityZen today to view live investment opportunities in the next wave of tech leaders.