Circle’s IPO Surge and the Thawing Tech IPO Market

Circle's stock skyrocketed 500% following its June IPO, catapulting its market capitalization to $42 billion. The company, backed by heavyweight investors Accel, Breyer Capital, and General Catalyst, saw its shares open strong before surging to six times their initial offering price. This rally has reignited hopes for a broader tech IPO revival after a prolonged dry spell.

The surge coincided with the US Senate passing the GENIUS Act in mid-June, which established federal regulations for dollar-pegged stablecoins. This legislative clarity propelled Circle's valuation upward, leaving its early investors with $8 billion in stock despite partial sell-offs.

Venture capital firms are finally seeing exits after three years of frozen IPO markets. The tech IPO drought began in early 2022 as inflation spiked, rates rose, and regulatory scrutiny intensified across the US and Europe. Now, the first half of 2025 is showing signs of thaw, with June alone hosting five tech IPOs—more than double the monthly average since January.

Other companies like AI infrastructure provider CoreWeave have followed similar trajectories, with delayed but explosive growth post-IPO. "It's refreshing and something we've been waiting for," noted Eric Hippeau of Lerer Hippeau, capturing the sentiment of investors starved for exits.