IPO market rebounds but liquidity and exit options remain constrained for founders
Public equity markets are reopening to venture-backed exits after a drought, but the comeback carries structural limits: secondaries and strategic acquisitions are now preferred routes for large investor liquidations rather than traditional IPOs.
Exit velocity remains slow relative to pre-2020 norms, forcing founders and early-stage LPs to pursue non-traditional liquidity strategies. For AI startups seeking capital efficiency, the constrained exit market raises cost of capital at every stage.