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A Hard Year For Software IPOs

vinodhBy vinodhSeptember 17, 2026No Comments3 Mins Read
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If you’re seeking to measure tech IPO market energy by the amount of cash firms have raised, 2026 is definitely up there.

However, nearly all the cash went to 2 firms. SpaceX alone accounted for 83% of the $90 billion raised this yr, whereas AI infrastructure firm Cerebras Systems scooped up one other 6%. A potential providing from Anthropic, in the meantime, might be even larger.

This small cohort is intriguing for what it excludes in addition to what it contains. Enterprise software program, lengthy a staple business amongst venture-backed IPOs, was primarily a no-show this yr. Energy, protection and house tech, in contrast, had been well-represented. We additionally noticed smaller choices from different sectors, together with medical units and consumer-facing startups.

Here are among the key findings in additional element:

Energy powers probably the most IPOs: About 1 / 4 of this yr’s tech startup choices hail from the power sector. The largest of those was from geothermal power supplier Fervo Energy. Several nuclear power-focused startups additionally made their debuts, together with X-energy and Hadron Energy, builders of small modular nuclear reactors, in addition to Standard Nuclear, targeted on superior nuclear gasoline.

A sprint of quantum, protection, aerospace, units and shopper: Beyond power, quantum computing firm Quantinuum delivered one of many yr’s bigger debuts, as did tools rental platform EquipmentShare. Defense tech and aerospace had been additionally sturdy performers, with choices from satellite tv for pc intelligence supplier HawkEye 360 and spacecraft developer York Space Systems. And on the patron entrance, e-bike and scooter platform Lime lastly made its market entrance, albeit at a valuation beneath its one-time peak.

An IPO SaaS-pocalipse: But what about SaaS? Mostly MIA. The paucity of enterprise software program choices this yr isn’t completely shocking given the affect of AI on the sector. VCs are pouring capital into a more moderen technology of AI-first platforms in authorized tech, accounting and different enterprise software program sectors. Existing SaaS unicorns are additionally transferring quick to include extra AI of their choices.

One finish result’s there are an terrible lot of SaaS unicorns and former unicorns which have concluded this yr will not be the time to pursue an IPO.

Winner-takes-almost-all

Another finish result’s that funding returns are trying extra concentrated than ever.

Of course, profitable massive or under no circumstances is way from a brand new factor within the startup world. Tech enterprise returns have at all times been propped up largely by a number of huge wins, with the rest of portfolio firms producing both losses or smaller worthwhile exits. But currently, the winner-take-almost-all-the-IPO-proceeds tilt is extra pronounced than ever.

The pipeline of tech firms which have filed for future IPOs doesn’t supply a lot comfort that this sample will change. Giant potential market debuts from Anthropic and OpenAI nonetheless dominate IPO chatter. Enterprise SaaS choices don’t.

Related Crunchbase question:



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