Venture capital-backed companies are opting for mergers, acquisitions, and buyouts over initial public offerings (IPOs), with a decline in the number of IPOs due to market uncertainties.
In the first half of the year, only 27 VC-backed companies went public, the lowest in at least a decade.
Some sectors such as artificial intelligence, national security, defense, and crypto are still interested in going public.
PE firms are also adjusting their exit strategies amid the IPO drought, prioritizing methods like selling businesses in parts or using 'continuation funds'.