LegalTech and the IPO Market-RIP or Activity Ahead?
- Monica Zent
- Sep 1
- 1 min read
Updated: Oct 22
Business Insider wrote that the much-anticipated IPO comeback may not materialize as expected. Despite optimism that 2025 would bring new momentum, the first quarter told a different story, with both Klarna and StubHub delaying their IPO plans.
Against this backdrop of market uncertainty, I wanted to examine the potential for IPOs in the LegalTech sector and consider how different scenarios could unfold. The latest edition of my newsletter, Venture Legal: Where Capital Meets Legal Innovation, takes a closer look at:
The overall IPO environment and what it signals for investors
What the slowdown could mean for LegalTech and the growth of legal technologies
How secondary markets may play a role in providing alternative pathways to liquidity
From the perspective of early-stage investors, several strategies are worth considering:
Prepare for longer holding periods rather than expecting a quick IPO or acquisition
Monitor the cap table to ensure that founders and early backers retain flexibility for secondary sales
Look beyond traditional acquirers, as secondary buyers, consolidators, and SPVs may provide partial liquidity options
Maintain realistic expectations, since liquidity may look different in this environment, but it remains achievable
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