Startups Skip Unicorn Status for Early IPOs

Late-stage startups are increasingly choosing to bypass the $1 billion private valuation milestone in favor of earlier IPOs. This trend indicates a mature era of capital discipline and realistic pricing aligned with public market benchmarks. In 2025, only five startups achieved unicorn status, mirroring last year's count despite a recovery in growth-stage funding. This flat number suggests a continuing reset in startup valuations, with companies like Shadowfax and Smartworks prioritizing public market access over valuation-led private rounds.

Several companies that might have previously become unicorns through private funding are now listing on public markets. Logistics firm Shadowfax, for instance, filed for an IPO after a private round valuing it at $712 million, reportedly targeting a $965 million valuation. Mattress brand Wakefit listed earlier this month at around $650 million, and co-working operator Smartworks debuted in July at roughly $590 million. This movement caps private-market valuations and accelerates the transition of scaled startups to public markets.

Another significant shift is the growing role of private equity in late-stage funding. All five unicorns minted in 2025 raised their most recent rounds primarily from private equity or large corporate investors. This is attributed to increased PE interest in profitable or near-profitable businesses, particularly in consumer-facing and financial services. As capital discipline tightens, founders are recalibrating success beyond paper valuations, focusing on building durable companies capable of delivering long-term outcomes.