The IPO market is returning selectively in 2026, not as a broad wave encompassing startups of all sizes. The companies advancing now are mostly those that used the years of slowdown to improve financial reporting, governance, and operations and build a stronger operating track record. This is the conclusion of Mark Williams, Chief Revenue Officer for the Enterprise sector at Datasite, as stated in an opinion article published through Crunchbase News.
IPO activity peaked in 2021, before rising interest rates, declining valuations, and recession concerns led to a sharp slowdown. According to EY’s review of the IPO market in 2025, 2022 and 2023 were the weakest years since the global financial crisis. Activity improved in 2024 and stabilized further in 2025, but many companies preferred to remain private, raise additional funding, and increase their scale until market conditions became more favorable.
A Recovery Led by Larger Companies
Crunchbase data shows that venture-backed companies valued at $1 billion or more went public in significantly greater numbers in the first half of 2026 than during the same period of the previous year: 58 companies globally, compared with 27 companies in the first half of 2025, and 69 companies throughout all of 2025. These companies raised $110.8 billion through IPOs, compared with $12.6 billion a year earlier.
But the aggregate figure conceals heavy concentration: SpaceX alone raised $86 billion, or approximately 78% of the total for the first half. Therefore, the data reflects the return of a window for going public, but does not yet establish a broad-based recovery.
Early Activity Is Not a Completed IPO
Datasite data provides another forward-looking indicator. The number of capital-raising projects, meaning new workspaces opened to manage fundraising processes, increased by 32% globally in the first half of 2026 year over year, while IPO-related projects rose by 33%. The company says these activities may precede reported outcomes by approximately six to nine months, as deal teams typically begin organizing due-diligence materials before filing or announcing.
Nevertheless, starting a project does not mean completing the transaction. The process may be halted, canceled, or shifted to a private-financing or sale process. For this reason, the real test will be these projects’ ability to convert into listing applications and completed IPOs over the next six to nine months.
What Does Readiness Mean for Companies?
Williams believes that growth alone is no longer sufficient to convince investors. Prospective companies need to close their books quickly, produce public-company-quality reports, and explain a credible path toward sustainable growth and profitability, alongside an experienced board of directors and finance team. They must also address regulatory scrutiny, cybersecurity, and quarterly obligations after listing.
This readiness serves more than just an IPO; it gives a company the choice between issuing shares, raising another private round, or completing a sale. It should also be reassessed during an acquisition, entry into new markets, or a change in capital structure, because these developments may alter disclosure requirements, internal controls, and regulatory exposure.
The Role and Limits of Artificial Intelligence
Artificial intelligence and automation can reduce the administrative work associated with preparation, such as classifying files, applying redaction processes, identifying missing materials, and keeping disclosures up to date. According to Datasite data, the average transaction-preparation time fell from 14 days to 12 days year over year in the first half of 2026, while the average due-diligence period remained at 181 days.
But these tools do not shorten work that depends on professional judgment: testing controls, resolving accounting matters, responding to regulators, and building investor confidence. The scenario also remains vulnerable to disruption if interest rates or volatility rise, the economy slows, the gap between private and public valuations widens, or regulatory and geopolitical shocks emerge. Therefore, the quality of the transition from initial projects to successful listings, and the performance of shares after the offering, will determine whether the market has actually reopened or whether current activity reflects incomplete preparation.