Exits & Liquidity
IPO Window
Periods when public market conditions are favorable for technology IPOs — characterized by investor appetite, high valuations, and strong aftermarket performance.
IPO windows open and close based on market sentiment, interest rates, and the performance of recent comparable IPOs. When windows are open, companies can go public at high valuations with strong demand. When windows close — as in 2022 — even strong companies postpone IPOs because pricing and aftermarket performance expectations are unfavorable.
VC-backed companies often time their IPO to coincide with open windows, sometimes holding companies private longer than ideal while waiting for better conditions.
In Practice
2020-2021 represented one of the most open IPO windows in tech history: Airbnb IPO'd at $68 and traded up to $165 on day one. DoorDash, Snowflake, and dozens of others IPO'd at record valuations. By 2022, the window had slammed shut — Klarna's valuation fell 85% from its private mark.
Why It Matters
For LPs, IPO windows determine when fund returns get realized. A fund that invested in 2018-2019 vintage companies expected 2021-2023 exits; the closed window in 2022-2023 extended holding periods and delayed distributions significantly.
VC Beast Take
The IPO window is one of the most frustrating aspects of VC timing. Companies that 'should' IPO can't because of macro conditions they don't control. The 2022-2024 window closure created a massive backlog of companies that should have been public — creating both frustration and opportunity.