Run the Numbers How Much Revenue Do You Need to IPO in 2025?
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Sep 13, 2025 The podcast dives into the shifting landscape of tech IPOs, revealing how revenue thresholds have changed dramatically in recent years. In 2010, $100 million was the standard, but today's expectations are much higher. The journey of companies like Figma post-acquisition attempts showcases the real-world implications of these standards. It also discusses why some firms choose to remain private and the impact of market dynamics on public companies. Finally, it emphasizes the necessity of reaching at least $500 million in revenue for an attractive IPO valuation.
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2010s IPOs Had A Much Lower Bar
- In the 2010s median IPO revenue was roughly $100M–$250M and that was sufficient to go public.
- Investors tolerated unprofitable growth then if companies showed a path to scale.
2021's IPO Frenzy And Big Debuts
- 2021 was an IPO bonanza with 1,035 companies going public globally, including Coinbase and Airbnb.
- Many debuts rode pandemic-driven demand and retail trading enthusiasm.
The Post-2021 IPO Freeze
- Rising interest rates and market corrections froze IPO activity in 2022–2023 as valuations collapsed.
- Companies that IPO'd with smaller revenues got pummeled during the sell-off.