As global markets react to President Trump’s tariff announcements, the post-election optimism regarding the US IPO market is diminishing. The increasing possibility of an international trade war is making now an unfavorable time for companies to go public. Although companies can choose to enter the market at any time, facing a significant downturn is typically avoided. Early 2024 saw optimism fueled by expected tax cuts and deregulation, resulting in a wave of IPOs, but current concerns over tariffs, economic slowdown, and fears of a trade war are causing venture capitalists and bankers to pull back on funding. This situation may lead to a slowdown in funding for startups that rely on successful IPOs or acquisitions as exit strategies. Nevertheless, Circle, a stablecoin issuer, has proceeded with its plans, potentially due to its revenue model being insulated from current trade policies. However, the overall environment remains risk-averse, which is not favorable for crypto equities.

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