2025 VC SurveyIsraeli tech eyes Wall Street: Will the IPO freeze finally thaw in 2025?
2025 VC Survey
Israeli tech eyes Wall Street: Will the IPO freeze finally thaw in 2025?
After years of stagnation, Israeli tech firms are signaling a shift as they prepare for public offerings.
After three consecutive years of a deep freeze in initial public offerings (IPOs) for tech companies on Wall Street, signs indicate that the storm is finally beginning to subside. The cautious optimism emanating from Israeli tech firms in recent months signals a shift in momentum—like a pendulum that had long been stuck in one direction finally swinging back, this time toward the positive.
In recent weeks, several Israeli tech companies have announced plans to prepare for a potential IPO or to publish a prospectus—an early sign of a market revival and perhaps even a turning point for the entire industry.
eToro, the Israeli fintech company, submitted a confidential prospectus for an IPO on Wall Street in January, targeting a valuation of $5 billion. The company had previously attempted to go public in 2021 through a SPAC merger at a valuation of over $10 billion, but the deal ultimately fell through.
AppsFlyer announced in early February that it is laying off 100 employees, approximately 7% of its workforce. The company currently employs 1,400 workers, two-thirds of whom are in Israel. Market analysts speculate that these layoffs are part of a broader effort to streamline operations ahead of a planned IPO in the coming year. The unicorn, which helps app owners identify their most profitable user acquisition channels, was founded in 2011, and its estimated annual revenue currently stands at around $400 million.
The cybersecurity unicorn Wiz has also got an IPO in its sights. Toward the end of 2024, one of its founders stated that the company aims to reach $1 billion in annual revenue by 2025—a milestone it wants to achieve before going public. "We'll go public when the stars align," he clarified.
Another potential IPO candidate is the Israeli fintech company Rapyd. Over the years, its founder has repeatedly asserted that the company is on a solid path to an IPO and is simply waiting for the right moment. "We want to grow at our own pace, which is fast and aggressive. As long as we can delay the IPO—which will be worth tens of billions of dollars—we will," said CEO Arik Shtilman.
Many companies preparing for an IPO are taking steps to refine and organize their business data—a process often seen as preparation for the transition to public status. These steps include cost-cutting measures such as layoffs, which demonstrate operational efficiency, as well as financial preparation through the review and alignment of financial reports. Companies are also working to present improved business and operational results, conduct comprehensive audits, and discontinue non-revenue-generating products.
In recent months, additional Israeli tech companies have surfaced as IPO candidates, including Snyk, Odysight.ai, Navan, and Deel. However, the past few years have posed significant challenges for the global tech sector, affecting both companies' readiness to go public and investor sentiment.
CTech's 2025 VC Survey gathered insights from prominent investors in the Israeli tech ecosystem, revealing a mix of cautious optimism and differing views on the likelihood of an IPO revival in 2025. While a general consensus is forming that IPO activity will resume, the exact timing and scale of the recovery remain uncertain, influenced by factors such as economic conditions, investor sentiment, and geopolitical stability.
The optimists
Some investors express strong confidence in a market rebound. They point to a backlog of companies that have been waiting for the right moment to go public and are now well-positioned for IPOs.
According to Mobilion Ventures Managing Partner Avi Feldman, "It seems that the global IPO drought may soon turn into fertile ground, as initial signs of improvement emerge in the capital markets."
Similarly, F2 Venture Capital's Barak Rabinowitz believes that "the IPO window is set to reopen in 2025," noting that "a strong pipeline of Israeli startups is ready to go public."
StageOne Ventures' Tal Slobodkin shares this optimism, stating, "I believe the IPO market will reopen, and there are several companies eager to go public in 2025."
Redseed anticipates a rise in IPO activity across various sectors and regions, attributing this to the continued stabilization of interest rates and the strong performance of public markets.
The cautious
While many investors are optimistic, others maintain a more measured outlook, pointing to factors that could impact the timing and pace of the recovery.
Amplefields Investments notes, "The global IPO drought is likely to ease in the coming year, but the recovery will be gradual and cautious." Like others in this camp, they emphasize that the reopening will be selective, with companies needing to carefully consider timing, valuation, and their readiness to meet market expectations.
10D Ventures believes the IPO market could see a gradual recovery in 2025 if interest rates stabilize and macroeconomic uncertainties ease, but stresses that profitability will be a key factor.
NFX suggests that while signs of recovery may emerge in late 2025, a substantial rebound is more likely in mid-2026.
Other investors highlight external risks. Merlin Ventures warns that the change in the U.S. administration could impact the economy and stock markets, influencing IPO prospects. Redseed adds that "economic uncertainties and potential trade tariffs could pose challenges," pointing to the possibility of new tariffs under the Trump administration.
The skeptics
A certain group of investors remains doubtful about a significant IPO revival in 2025.
OurCrowd argues that the prolonged IPO drought has created a liquidity crisis for LPs and venture funds, making a recovery more urgent but not necessarily imminent.
YL Ventures believes that while the cybersecurity sector is well-positioned to lead an IPO revival, most Israeli cybersecurity firms will likely wait until 2026.
Peregrine Ventures contends that while there are encouraging signs, it may take another year for the global IPO market to fully recover due to geopolitical uncertainties and varying sector-specific recoveries.
Earth & Beyond Ventures acknowledges positive indicators, such as easing inflation and a softer U.S. interest rate stance, but warns that "uncertainties remain."
Mobilion Ventures, while hopeful, notes that "the speed and extent of the recovery will depend on economic conditions and investor willingness to allocate capital to IPOs."
Key1 Capital attributes the IPO drought not to a lack of investor appetite but to a shortage of companies willing to go public at valuations below their last funding rounds.
Firstime VC suggests that while a rebound is possible in 2025, a return to pre-drought levels will take longer.
Blumberg Capital believes that while the IPO market could begin to thaw in late 2025, the recovery will be gradual, with M&A activity remaining a more likely exit path in the near term.
The wait-and-see approach
Some investors are refraining from making definitive predictions about the IPO market.
SeedIL Ventures admits, "We have no visibility on this."
TLV Partners, as an early-stage investor, does not claim expertise in public markets but notes that macroeconomic trends appear encouraging.
Entrée Capital believes that returning to the boom years of 2020–2021 will take time.
S Capital takes a pragmatic stance, stating, "Predicting the end of the global IPO drought is for those who claim to see the future. IPOs will happen when companies are ready."
