Paul Hastings publishes 2025 US IPO report
Paul Hastings published its 2025 Going Public: US IPO Report, examining trends across the US IPO market and providing outlook insights for 2026.
The report highlights the rebound in IPO activity, driven by a return of larger transactions and increased investor demand, alongside shifting sector dynamics with stronger participation from financial services and fintech issuers.
The analysis also addresses evolving market conditions, including pricing trends, regulatory developments, and the potential for larger offerings as the IPO pipeline continues to rebuild.
We sat down with partners Colin Diamond and Gil Savir and asked them to illustrate the key takeaways for Israeli businesses:
What should Israeli growth companies be prioritizing now to ensure they are genuinely IPO-ready as US markets regain momentum?
Diamond: The bar to go public has continued to increase for traditional tech companies. While there is no hard and fast rule, typical metrics are USD 5 billion+ valuation; USD 300 million ARR; 25 – 40% growth; profitability or a path to it. These hurdles mean that tech companies that might have gone public a few years ago are held back as they scale, and the challenge as they scale is to continue their growth.
So in addition to all of the “usual” priorities for a company on the IPO-ramp, companies should expect to remain private for longer and, as a result, should expect to undertake transactions and structure their business operations in ways that they might have done after being public in the past. By way of example, private companies are looking more at how acquisitions can advance their business strategy and achieve the growth and scale they need even if it causes their IPOs to be delayed. And private companies are look for ways to expand their TAM which often means building fully global business earlier.
In reality, we have seen more M&A than IPOs in recent years in part because of these challenges; however, the IPO window appears to be reopening for the right companies.
How can Israeli founders better position themselves to meet evolving investor and governance expectations before pursuing a public listing?
Savir: Israeli founders tend to excel on technology and speed, but the gap we often see when approaching US public markets is less about innovation and more about readiness – governance, predictability, and how the story is communicated to institutional investors. The most effective positioning starts well before a listing process. Founders should build a governance framework that looks “public company ready” early on, not because regulators require it at that stage, but because investors do. That means an independent, credible board (not just friends and early backers), clear committee structures, and disciplined decision-making processes. It signals maturity and reduces perceived execution risk.
In parallel, financial infrastructure needs to evolve from startup-level flexibility to public-company rigor. Investors expect clean, auditable financials, consistent KPIs, and the ability to explain performance drivers quarter over quarter. It’s not just about having the numbers – it’s about demonstrating control, visibility, and repeatability.
Another area where Israeli founders can differentiate themselves is in communication. US investors place significant weight on transparency, guidance philosophy, and credibility over time. Founders should refine how they tell their story: what drives growth, what the long-term model looks like, and where risks sit. Being overly optimistic or vague tends to be discounted quickly in the US market.
Operationally, companies should also think ahead about scalability – internal controls, legal and compliance functions, and the ability to operate under US securities laws. This includes everything from disclosure discipline to managing MNPI and understanding how to interact with analysts and investors.
Finally, it’s important to build relationships early. Engaging with banks, advisors, and even potential investors well before a transaction helps shape the equity story and creates familiarity in the market. The companies that perform best post-listing are usually the ones that treated the IPO not as a finish line, but as a step in a longer-term public company journey.
In short, the shift is from being a great company to being a great public company candidate – and that transition is as much about governance, discipline, and credibility as it is about growth.
Read the full report here.
