The New York Times article examines how tech companies, like San Francisco-based car rental start-up Turo, are delaying their long-awaited public listings amid persistent market volatility and macroeconomic uncertainty. Turo recently pulled its IPO plans, citing that “now is not the right time,” a sentiment echoed by other companies such as Cerebras and Justworks. With market jitters fueled by rising inflation, regulatory changes, and geopolitical risks, even promising firms are opting to raise capital privately, as seen with Stripe and Databricks, rather than subjecting themselves to the rigorous demands of public markets. Analysts note that although the overall pace of IPOs has improved compared to last year, big-name tech companies remain cautious until there is clearer insight into economic and political policies.

Key Points:

• IPO Delays: Turo and other tech firms have postponed going public due to market volatility, inflation concerns, and regulatory uncertainty.
• Market Conditions: The rapid changes in the stock market, including a dramatic sell-off in some tech stocks following the launch of the Chinese AI app DeepSeek, contributed to a cooling of investor enthusiasm for new listings.
• Private Funding Trends: Companies like Stripe and Databricks, with significant capital raised privately, illustrate a trend toward using private markets to meet financial needs, reducing the urgency to go public.
• Revenue Requirements: Investment bankers now expect tech startups to either achieve $200 million in annual revenue or demonstrate exceptionally high growth before considering an IPO.
• Industry Caution: Even though some IPO activity has occurred, industry leaders and analysts stress that companies should delay public offerings until there is more stability in economic policies and market conditions.

Why did the start-up decide to stay private? Because they didn’t want to “share” their problems with the public just yet!
Link to Article