Startup News: Tariffs trigger IPO delays
Klarna, the private Stockholm, Sweden-based buy-now-pay-later fintech, and StubHub, the private online ticket marketplace based in San Francisco, California, have both delayed their planned IPOs1 following a sharp downturn in the stock market tied to President Trump’s sweeping new tariffs. Both companies had been preparing to meet with investors in the coming weeks but chose to postpone amid mounting market volatility. Klarna was eyeing a $15 billion valuation — well above its $6.7 billion mark from 20222 — while StubHub’s offering was expected to follow a strong revenue year. Backed by major institutions including Sequoia Capital, Mubadala Investment and Goldman Sachs, both firms are taking a wait-and-see approach.
According to Howe Ng, EVP, Head of Data and Investment Solutions at Forge, “We expect repricing across public markets, which will inject high volatility into valuation. This will likely have a knock-on effect on privates, and private pricing generally lags public pricing. Private markets are less reactive to market sentiment and volatility day-to-day, and it may take several weeks before we see if pricing is affected.”
Ng adds, “As recession fears have come into focus, this will likely first impact the sectors that are heavily dependent on consumers. If companies can afford to stay private, it’s not a bad strategy to pause IPO plans until volatility subsides.”
Tech sector feels the heat: Nasdaq's worst week since 2020
The broader tech ecosystem has felt the brunt of the market fallout. The Nasdaq logged its worst week3 since the early days of the COVID-19 pandemic, with major firms like Apple, Tesla and Meta shedding massive market cap. IPOs that were once expected to lead a 2025 tech revival — such as Klarna, StubHub and fintech company Chime4 — have now been put on hold. Even companies that went public recently, like CoreWeave, have faced a rocky road. Its share price dropped more than 12% shortly after its debut, underscoring how unpredictable post-IPO performance has become in today’s climate.5
The private market navigates uncertainty
As public markets absorb the shocks of tariff-driven volatility, the impact is starting to filter into the private market. While the private space can be slower to react, it is not immune. The reset in valuations is causing both investors and founders to reassess their timelines and growth expectations.
Charlie Grimes, EVP, Head of Global Capital Markets at Forge, highlights the shifting dynamics: “If the secondary market is the only place to access high-growth private companies in a closed IPO environment, we anticipate seeing high demand for quality companies, especially if interest rates come down as the market expects. But the big question is pricing and whether valuations will reset yet again.”
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