Ipo Market Stalls Amid Biotech Boom And Missing Tech Giants

The IPO market has been underwhelming in 2026, with only a few notable exceptions. Despite predictions of a rebound, the first couple of months of the year have seen a steady stream of new filings from companies in sectors such as construction tech, space tech, and biotech. However, SaaS companies, which were once a staple of the IPO market, have been noticeably absent.

According to Crunchbase data, 11 venture-backed U.S. companies went public on major exchanges so far this year, raising just over $3 billion. This is a relatively robust showing for the first couple of months of the year, but it’s still far below the standards set by previous years.

One notable exception is EquipmentShare, a service that provides construction equipment rentals and support for building projects. The 11-year-old company raised more than $700 million in its January offering and had a recent market cap of over $7 billion. Another standout is York Space Systems, a space tech company that’s majority-owned by private equity firm AE Industrial Partners. It recently valued around $3.4 billion.

Despite the lack of SaaS companies in the IPO pipeline, venture capital firms have not been struggling to raise cash for new funds. In fact, many firms have reported strong performance, with Lightspeed Venture Partners raising money for three new funds that would total about $7 billion. Andreessen Horowitz also raised $7.2 billion for its new funds.

The financial services sector has seen a resurgence in venture funding, with companies like Blue J and Eudia landing significant deals. The legal tech sector is also experiencing a boom, with companies like Filevine and Harvey raising hundreds of millions of dollars. Funding to AI-related fields has been particularly strong, with companies like OpenAI, Scale AI, Anthropic, Project Prometheus, and xAI each raising over $5 billion in 2025.

The market is seeing a surge in late-stage funding, with many deals exceeding $500 million. This trend is expected to continue in 2026, with investors placing bigger bets on the most highly valued private companies. The IPO market may also see an increase in larger offerings for venture-backed companies, which could have significant implications for the industry.

The lack of SaaS companies in the IPO pipeline is surprising, given their historical dominance of the market. However, it’s likely due to concerns about AI-driven disruption. Many SaaS companies are struggling with the impact of automation on their business models. As a result, they may be hesitant to go public until the market becomes more favorable.

The absence of SaaS companies from the IPO pipeline is also a sign of broader market trends. The industry is seeing a shift towards later-stage funding, with many deals taking place in the $500 million+ range. This trend is expected to continue, with investors placing bigger bets on the most highly valued private companies.

The rise of fintech startups has been a notable trend in 2025, with companies like Stripe and Polymarket landing significant deals. The payments infrastructure giant announced a tender offer at a $159 billion valuation, which represents an impressive 49% increase from its previous peak valuation. This deal is expected to provide liquidity to current and former employees.

The surge in fintech funding has been driven by the growth of the sector’s revenue products, including billing, invoicing, and tax. These products are on track to collectively hit an annual run rate of $1 billion in 2026. The demand for payments infrastructure is expected to continue, with companies like Stripe counting major customers such as Google, Amazon, and Shopify.

Venture capital firms are adapting to the changes in the market, reporting strong performance despite concerns about liquidity. Lightspeed Venture Partners and Andreessen Horowitz have been leading the charge, raising significant amounts of money for new funds.

The growth of late-stage funding has been driven by the sector’s revenue products, including billing, invoicing, and tax. These products are on track to collectively hit an annual run rate of $1 billion in 2026. The demand for payments infrastructure is expected to continue, with companies like Stripe counting major customers such as Google, Amazon, and Shopify.

The lack of SaaS companies in the IPO pipeline is a sign of broader market trends, including the shift towards later-stage funding and the impact of AI-driven disruption on business models. However, it’s also clear that venture capital firms are adapting to these changes, with many firms reporting strong performance despite concerns about liquidity.

As investors consider IPOs from SaaS companies, they may be more cautious due to concerns about AI-driven disruption. The lack of SaaS companies in the IPO pipeline is surprising, but it’s likely a sign of a broader market trend towards later-stage funding and the impact of automation on business models.

The rise of fintech startups has created new opportunities for companies in the sector, driven by the growth of revenue products like billing, invoicing, and tax. These products are expected to continue driving the demand for payments infrastructure, with companies like Stripe counting major customers such as Google, Amazon, and Shopify.

Venture capital firms are adapting to the changes in the market, reporting strong performance despite concerns about liquidity. Lightspeed Venture Partners and Andreessen Horowitz have been leading the charge, raising significant amounts of money for new funds. The surge in late-stage funding has driven the growth of revenue products, including billing, invoicing, and tax.

The lack of SaaS companies in the IPO pipeline is a sign of broader market trends, including the shift towards later-stage funding and the impact of AI-driven disruption on business models. However, it’s also clear that venture capital firms are adapting to these changes, with many firms reporting strong performance despite concerns about liquidity.

In 2026, the IPO market may see an increase in larger offerings for venture-backed companies, which could have significant implications for the industry. The rise of fintech startups has created new opportunities, driven by the growth of revenue products like billing, invoicing, and tax. These products are expected to continue driving the demand for payments infrastructure.

The lack of SaaS companies in the IPO pipeline is a sign of broader market trends, including the shift towards later-stage funding and the impact of AI-driven disruption on business models. However, it’s also clear that venture capital firms are adapting to these changes, with many firms reporting strong performance despite concerns about liquidity.

Venture capital firms are leading the charge in raising significant amounts of money for new funds, driven by the growth of revenue products like billing, invoicing, and tax. The surge in late-stage funding has created new opportunities for companies in the sector, with the demand for payments infrastructure expected to continue driving the industry forward.