Secondary Market Funding Surges Amid IPO Slowdown

Late-stage startup funding surged in the first quarter of 2025, but industry experts expect a slowdown in the coming months due to global economic uncertainty and the impact of new U.S. trade tariffs. Investors are becoming increasingly cautious, prompting some IPO-bound startups to reduce their offer sizes and others to delay public listings or accept flat valuations. Despite the challenging environment, venture capitalists are turning to secondary funds as an alternative way to offload stakes, reflecting a strategic adjustment in response to market volatility. The recent global trade tensions have also dampened investor sentiment in markets like India, contributing to a more cautious approach to late-stage funding. However, the strong start to the year, marked by a sharp increase in Series F and later-stage funding rounds, underscores ongoing interest in scalable and profitable startups even as overall deal activity moderates.