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Startups Skip Unicorn Status for Early IPOs
22 Dec
Summary
- Few startups achieved unicorn status as focus shifts to public markets.
- Growth-stage funding increased, but valuations remain disciplined.
- Private equity plays a larger role in backing profitable businesses.
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.
