After a brief slump in April, the U.S. initial public offering (IPO) market is roaring back to life. A wave of startup companies is moving quickly to launch public offerings amid renewed investor optimism and more stable economic signals.
This spring rebound follows a turbulent start to the year, marked by concerns over tariffs and geopolitical tensions. However, with recent stabilization in the equity markets and improved risk sentiment, investment banks are urging tech firms and high-growth startups to act quickly while the window remains open.
eToro and Hinge Health Lead the Charge
Among the most prominent movers is eToro, the Israel-based social trading and investment platform. The company debuted on the Nasdaq this month under the ticker symbol “ETOR,” securing an IPO price of $52 per share—well above the projected range. On its first trading day, the stock surged nearly 30%, indicating strong appetite for tech-driven platforms with global reach.
The listing also marked a milestone for eToro, which had previously attempted a SPAC merger that did not materialize. This successful direct IPO not only raised over $600 million in fresh capital but also reaffirmed investor interest in fintech ventures with robust user bases and expanding international operations.
Another headline-grabbing debutant is Hinge Health, a digital health startup specializing in physical therapy solutions for chronic musculoskeletal pain. The San Francisco-based company is aiming for a valuation of $2.6 billion through its New York Stock Exchange listing. With a plan to issue 13.7 million shares priced between $28 and $32, Hinge Health could raise over $437 million to fuel its next growth phase.
The firm, which has built its brand on a data-driven approach to physical therapy, sees strong tailwinds from the telehealth boom and growing employer adoption of preventative health programs.
Not All Startups Are Jumping In
Despite the bullish momentum, not every company is ready to ride the IPO wave. Klarna, the Swedish financial technology company known for its “buy now, pay later” services, has shelved its IPO plans in the U.S. for the time being. Executives reportedly cited market instability and ongoing concerns about consumer debt levels and credit risk.
Klarna’s first-quarter performance showed a net loss of nearly $100 million, more than double its losses from the previous year. These numbers raised red flags among potential investors already wary of macroeconomic headwinds.
Similarly, ticket resale platform StubHub has also paused its IPO rollout. Although the company saw a 30% revenue surge in 2024, new tariff policies and volatile trading sessions have prompted management to reassess the timing of its public debut.
Banks Urge Startups to Move Fast
Behind the scenes, underwriters are pressing startup executives to move quickly. There’s a growing consensus that market conditions may not stay this favorable for long, with potential disruptions looming from central bank policy changes, inflation concerns, and international trade developments.
Some analysts believe this recent uptick in IPO activity could become a short-lived window, urging late-stage startups to capitalize on investor enthusiasm before sentiment shifts again.
While not every company will jump into the public markets this quarter, the current trend shows a resurgence of confidence in high-growth ventures. For startups prepared to meet investor scrutiny, the IPO path is once again a viable—and potentially lucrative—route forward.