US IPO Market Rebounds with Over $10 Billion Raised in Q3, Tech Leads Resurgence

The U.S. Initial Public Offering (IPO) market has experienced its most significant revival since 2021, with over $10 billion raised in the third quarter of 2025, signaling a definitive return of investor confidence. September alone saw concentrated activity, with more than $6 billion secured across eight major debuts, led by cybersecurity firm Netskope and ticketing giant StubHub. This resurgence marks a pivotal shift after a prolonged drought, driven by a more stable macroeconomic environment and investor demand for high-growth tech companies.Cybersecurity company Netskope made a strong debut, raising $908 million in its IPO. The offering was notably oversubscribed by 20 times and saw its shares jump 18% on its first day of trading on Nasdaq. CEO Sanjay Beri emphasized the company's role in securing AI and cloud environments, stating, "The world is moving to AI and cloud. That requires a redefinition of the biggest market in security, data network security. That's what we are."Conversely, online ticket seller StubHub raised approximately $800 million at an $8.6 billion valuation but faced a challenging market reception. After pricing its shares at $23.50, the company's stock declined 6.4% on its debut and fell 21% below its IPO price by its third trading day. This performance comes amid increased regulatory scrutiny on the ticketing industry, including federal regulations on transparent pricing.Beyond these two major listings, September's activity included other significant tech and fintech IPOs. Fintech giant Klarna raised $1.37 billion, while Figure Technologies secured $787 million, and Gemini raised $425 million. Other companies like Black Rock Coffee, Via Transportation, and Legence also contributed to the month's robust capital-raising efforts, highlighting sector diversity.Jason Lemkin, founder of SaaStr.Ai, observed a critical change in market dynamics compared to 2021. He noted,> "The window is open for companies with $400M+ ARR and disciplined unit economics. Unlike 2021's 'growth at any cost,' this market rewards sustainable business models."This sentiment underscores a new era of selectivity, where investors prioritize strong fundamentals and clear paths to profitability.The robust pipeline for the fourth quarter suggests continued momentum for the U.S. IPO market, indicating that well-prepared companies with solid financial metrics can once again access public capital. This renewed activity signals that "the IPO drought is officially over," as stated in the initial market commentary, but success now demands operational excellence and financial discipline.