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Run the Numbers

How much revenue do you need to IPO in 2025?

Feb 15, 2025
Explore the dramatic shift in IPO revenue expectations over the last decade. Companies now need at least $500 million in revenue to even consider going public. Delve into the evolution of successful IPOs from the SaaS boom to high-profile deals like Coinbase and Airbnb. Discover the implications of the recent market freeze and look ahead to potential IPO candidates in 2025, including Stripe and Databricks. It's a new landscape, and the stakes have never been higher!
09:37

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Quick takeaways

  • The revenue threshold for IPOs has risen significantly from $100 million in the 2010s to $500 million by 2024.
  • The IPO market experienced a slowdown in 2022-2023, but signs of recovery began in 2024 with companies approaching $1 billion in revenue.

Deep dives

The Evolution of IPO Revenue Requirements

The revenue threshold required to go public has significantly increased over the past decade, reflecting changed investor expectations. In the early 2010s, companies with revenues as low as $100 million, such as RingCentral and Etsy, could successfully complete an IPO, drawing on early industry advantages. However, by the late 2010s, the landscape shifted dramatically, with companies like DoorDash and Airbnb going public with revenues exceeding $2 billion. As of 2024, the bar has been raised even higher, with successful IPO candidates now expected to have revenues closer to $500 million, indicating a distinctly different market environment.

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