Tentative IPO Rebound Threatened by DeepSeek-Fueled Volatility
- Firms ‘have to fight extra battles’ to debut, Pitchbook says
- Rout in AI, tech stocks adds hurdle for VC-backed IPO firms
Five of the top 10 IPO candidates the report highlights are in tech-related sectors that were battered in the DeepSeek downturn.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
When US tech stocks were crushed by the emergence of DeepSeek this week, already-cautious investors found one more reason to be skeptical about buying into venture-backed initial public offerings, according to PitchBook.
IPO activity for companies backed by venture capital firms has stalled over the last three years, reaching its slowest level since 2011, according to a PitchBook report from Jan. 24. Now, a spike in stock-market volatility may further complicate hopes for a rebound in public listings, which had already been in question.