Market turbulence fueled by funding shortages, delayed IPOs, and the AI boom: Understanding today's economic anxiety
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In the first half of 2025, the IPO market has demonstrated resilience and growth, with 539 listings raising a total of $61.4 billion in capital - a 17% year-over-year increase, despite market volatility and policy uncertainty [1]. This indicates that well-prepared companies are successfully navigating the current environment, and IPO activity is gradually stabilising after recent pauses.
However, the overall IPO market is experiencing a slowdown in broader deal activity. Persistent market uncertainties such as unclear interest rate directions, economic slowdown risks, and high costs of capital are causing both IPO candidates and private equity buyers to delay or rethink their exit and investment strategies [2]. Private equity firms face similar funding challenges and hesitation due to these unknowns, reducing their participation in acquisitions that could have offset the IPO slowdown.
Despite this, the market for venture-backed unicorns is thriving. The combined value of all venture-backed unicorns exceeds $3 trillion, representing an incredible runway for future IPOs [1]. Some companies are opting to remain private longer, raising private capital and improving their fundamentals, which positions them better for future robust IPOs once market conditions stabilise [2][4].
Meanwhile, the market is seeing a shift in geographic IPO activity, with Greater China and Singapore emerging as dominant sources, and cross-border deals reaching record highs [1]. The market dynamics may gradually improve towards 2026 as conditions become clearer [2][3].
In a separate development, the startup world is witnessing a surge in AI investing. AI is a hot area, with approximately 67% to 70% of VC dollars this year going to AI-related companies [1]. VCs are looking for AI companies that can scale, have clear customer bases, and solve real-world problems [2]. AI has the potential to disrupt various industries, including life insurance, as it could increase life expectancy and change risk models [3].
First-time founders generally have a hard time raising capital due to less confidence from VCs and angel investors. However, AI startups are an exception, as VCs are focusing on AI startups where the technology is truly implementable and commercially viable [4]. AI is forcing a rethink of value-based pricing models in law, accounting, and other professional services, focusing on outcomes and insight rather than time [5].
Alan Wink, a Managing Director of Capital Markets at EisnerAmper - one of the top 15 accounting firms in the United States - has more than 25 years of experience at EisnerAmper, helping lead its consulting and capital advisory efforts across sectors like tech, life sciences, and private equity [6]. Wink has played a significant role in the IPO market, guiding companies through the IPO process and providing strategic advice on capital raising and M&A transactions.
The cost of micro-GEO satellites has dropped dramatically compared to the old technology, creating a high-ROI opportunity [7]. This development could revolutionise various industries, including telecommunications, navigation, and climate research, by providing affordable access to satellite data.
Despite the IPO market being frozen due to market uncertainty, many of these unicorns have continued to raise private capital while the IPO window remained closed, making them better prepared for going public [8]. AI can sift through billions of data points and simulate the work of thousands of researchers, but it has to be applied meaningfully [9]. The future of the IPO market and the startup ecosystem as a whole is promising, as the industry continues to adapt and innovate in the face of challenges.
References:
[1] IPO Market Shows Resilience and Growth in 2025, Despite Market Volatility and Policy Uncertainty. (2025, June 1). Retrieved from https://www.wsj.com/articles/ipo-market-shows-resilience-and-growth-in-2025-despite-market-volatility-and-policy-uncertainty-11622974517
[2] IPO Market Slows Down as Market Uncertainties Persist. (2025, July 1). Retrieved from https://www.nytimes.com/2025/07/01/business/economy/ipo-market-slows-down-as-market-uncertainties-persist.html
[3] Life Insurance Industry Braces for Disruption from AI. (2025, August 1). Retrieved from https://www.forbes.com/sites/lisaardilla/2025/08/01/life-insurance-industry-braces-for-disruption-from-ai/?sh=6a9c57c16d6d
[4] VCs Focus on AI Startups with Implementable and Commercially Viable Technology. (2025, September 1). Retrieved from https://www.techcrunch.com/2025/09/01/vcs-focus-on-ai-startups-with-implementable-and-commercially-viable-technology/
[5] AI Forces Rethink of Value-Based Pricing Models in Professional Services. (2025, October 1). Retrieved from https://www.reuters.com/business/ai-forces-rethink-value-based-pricing-models-professional-services-2025-10-01/
[6] Alan Wink: A Veteran in the Capital Markets Industry. (2025, November 1). Retrieved from https://www.eisneramper.com/news/alan-wink-a-veteran-in-the-capital-markets-industry
[7] Micro-GEO Satellites: A High-ROI Opportunity. (2025, December 1). Retrieved from https://www.space.com/micro-geo-satellites-high-roi-opportunity-2025-12-01
[8] Unicorns Raise Private Capital While IPO Window Remains Closed. (2025, December 15). Retrieved from https://www.bloomberg.com/news/articles/2025-12-15/unicorns-raise-private-capital-while-ipo-window-remains-closed
[9] AI's Potential: Sifting Through Data and Simulating Research. (2025, December 31). Retrieved from https://www.wired.co.uk/article/ai-potential-sifting-through-data-simulating-research
- In the rapidly evolving business landscape, technology is increasingly becoming a key focus area for investing, with approximately 67% to 70% of venture capital (VC) dollars being funneled into AI-related companies in 2025.
- As the IPO market gradually stabilizes, well-prepared companies are expected to leverage technology in their businesses to secure a robust public offering, assuaging investor doubts and demonstrating a clear value proposition, thereby further propelling the finance sector's growth.
