An in-depth analysis of the pre-IPO technology market, including key trends in SaaS valuations, AI company funding rounds, and what to expect in the coming year. We explore which sectors are attracting the most capital and why.
The pre-IPO technology investment landscape in 2025 continues to evolve rapidly, driven by innovation in artificial intelligence, enterprise software, and financial technology. According to recent market data, SaaS companies are maintaining strong valuations with median ARR multiples between 8-12x for companies with 40%+ growth rates, while AI infrastructure companies are commanding unprecedented premiums of 15-25x ARR for category leaders.
Key trends include increased focus on profitability metrics, with investors now requiring companies to demonstrate clear paths to profitability within 18-24 months. The average time to IPO has extended to 10-12 years from founding, compared to 7-9 years in previous cycles. Secondary market transactions have surged, with over $50 billion in secondary volume expected in 2025, as early investors and employees seek liquidity.
We expect continued strong activity in fintech, healthtech, and enterprise SaaS sectors, with particular interest in companies addressing large addressable markets ($10B+ TAM) with defensible competitive moats. Companies with net revenue retention above 120% and gross margins above 75% are commanding premium valuations.
Sector Performance Deep Dive
Enterprise SaaS: The sector continues to lead with strong fundamentals. Companies like Databricks, Stripe, and Canva have achieved valuations exceeding $20 billion in recent funding rounds. Median ARR growth rates for top quartile companies remain above 60%, with gross margins averaging 78%.
AI Infrastructure: This sector has seen explosive growth, with companies like Anthropic, Mistral AI, and CoreWeave raising billions in funding. Infrastructure companies providing GPU compute, model training platforms, and inference engines are seeing 3-5x revenue growth year-over-year.
Fintech: Companies are navigating complex regulatory landscapes while maintaining growth trajectories. Payment processors and B2B fintech companies are particularly attractive, with companies like Rippling and Deel achieving $10B+ valuations.
Investment Trends and Metrics
Valuation multiples remain elevated for high-growth companies, with particular focus on companies demonstrating path to profitability. Series B and C rounds are seeing median valuations of $150-300M, with top quartile companies achieving $500M+ valuations. Secondary market activity has increased significantly, with platforms like Forge and EquityZen facilitating billions in transactions.
Key metrics investors are prioritizing include: ARR growth (targeting 50%+), gross margins (70%+ for SaaS), net revenue retention (110%+), and burn multiples (under 1.5x). Companies that can demonstrate these metrics consistently across 4-6 quarters are seeing the strongest investor interest.
Looking Ahead to 2026
As we move through 2025 and into 2026, we anticipate continued strong performance in technology sectors, with particular attention to companies that can demonstrate sustainable unit economics and clear competitive advantages. The IPO window is expected to remain selective, with only the strongest companies going public. We're seeing increased interest in vertical SaaS solutions, AI-native applications, and companies addressing climate tech and healthcare innovation.
Market conditions suggest that companies with strong fundamentals will continue to attract capital, while those with weaker unit economics may face challenges. The focus on profitability and sustainable growth is likely to persist, making due diligence and careful selection more important than ever for pre-IPO investors.