After three slow and often frustrating years, unicorn exits have finally picked up with remarkable vigor in 2025, marking a significant inflection point for the venture capital ecosystem, an in-depth analysis of Crunchbase data reveals. The long-awaited resurgence has brought a much-needed breath of fresh air to investors and founders alike, eager for liquidity and validation after a period of market contraction and uncertainty. IPO counts for unicorn-valued companies, those private enterprises commanding a valuation of a billion dollars or more, surged back up to pre-2021 levels, signaling a renewed appetite from public markets. However, the true headline-grabbing story of 2025 lies in the realm of mergers and acquisitions, where M&A deals reached unprecedented heights, setting new all-time records for both the sheer volume and the collective value of unicorn exits. This pivotal year effectively recalibrated expectations and reignited optimism for the future of high-growth tech companies.

The M&A landscape in 2025 witnessed an extraordinary level of activity, registering the highest exit numbers ever recorded for unicorn companies. A staggering 36 deals were completed throughout the year, collectively totaling an eye-watering $67 billion in value. This figure represents a monumental leap compared to previous years, underscoring a strategic shift in how larger corporations and private equity firms are approaching growth and innovation. Instead of nurturing internal R&D for years, many opted to acquire established, high-potential unicorns, integrating their cutting-edge technologies and market shares directly. This trend was fueled by a confluence of factors: stabilizing interest rates making financing more accessible, corporate buyers seeking to consolidate market positions or rapidly expand into new verticals, and the increasing pressure from venture capital limited partners for returns on their decade-long investments.

Among the 36 landmark M&A deals, several stood out for their sheer scale and strategic implications, reshaping industries and creating new market leaders. The largest transactions of 2025 included:

  • Databricks’ acquisition of Scale AI for $18 billion: This mega-deal saw data and AI leader Databricks absorb Scale AI, a pivotal platform for AI data labeling and validation. The acquisition was a strategic masterstroke, allowing Databricks to offer an end-to-end AI lifecycle management solution, from data ingestion and processing to model training and deployment, significantly enhancing its competitive edge against cloud giants and specialized AI platforms.
  • Microsoft’s purchase of Anthropic for $15 billion (prior to its rumored IPO): In a stunning move that preempted a highly anticipated public offering, Microsoft secured Anthropic, one of the leading generative AI research companies. This acquisition solidified Microsoft’s position in the fiercely competitive AI race, granting it exclusive access to Anthropic’s cutting-edge large language models and research talent, directly challenging rivals like Google and OpenAI. The deal underscored the strategic imperative for tech titans to control foundational AI intellectual property.
  • Salesforce’s integration of Notion for $9 billion: Cloud software giant Salesforce expanded its collaboration and productivity suite by acquiring Notion, the immensely popular workspace platform. This acquisition was aimed at enhancing Salesforce’s offerings for hybrid work environments, enabling deeper integration of project management, document creation, and knowledge sharing within its expansive CRM and enterprise application ecosystem. It was seen as a move to counter the growing influence of collaborative tools from Google and Microsoft.
  • Stripe’s acquisition of Checkout.com for $7 billion: In a significant consolidation within the fintech sector, payment processing powerhouse Stripe acquired its European rival, Checkout.com. This deal created an undeniable global leader in online payments, particularly strengthening Stripe’s presence in EMEA and APAC markets, leveraging Checkout.com’s robust infrastructure and merchant network. The acquisition was driven by a desire for market dominance and efficiency of scale in a rapidly evolving digital payments landscape.

The stark contrast with 2024 further highlights the magnitude of 2025’s M&A boom. In the preceding year, we counted 22 unicorns that were acquired, which, while the second-highest count of all time, represented a comparatively modest $7 billion in total exit value. The dramatic leap in value from $7 billion to $67 billion in just one year suggests a fundamental shift in the type and maturity of unicorns being acquired. In 2025, acquirers were not just scooping up early-stage innovators but were targeting more mature, revenue-generating unicorns with established market positions and significant intellectual property, indicating a willingness to pay premium prices for proven assets. This also reflects a market where private valuations had, in many cases, reset to more realistic levels, making M&A a more attractive option for both buyers and sellers than the volatile IPO market of the preceding years.

IPOs Stage a Strong Comeback

While M&A captured the lion’s share of headlines for its record-breaking values, the IPO market for unicorn companies also experienced a robust revival, picking up significantly year over year. A total of 40 unicorn companies successfully debuted via a traditional initial public offering, a clear sign of renewed investor confidence in public markets. Additionally, two companies opted for alternative listing methods, going public via a SPAC or reverse merger, though these represented a smaller fraction of the overall activity.

These IPO counts are remarkably in line with the vibrant periods of 2018 through 2020, signaling a return to a more predictable and active public listing environment. The collective value at the listing price for these unicorn IPOs in 2025 was approximately $207 billion. While this figure stood $90 billion below the exceptional highs of 2020 – a year that saw several truly colossal IPOs inflate the overall value – it was comfortably on par with 2019 and 2018 valuations, which recorded $215 billion and $197 billion respectively. This indicates a healthy, albeit not hyper-inflated, market for new public companies, where investors are rewarding sustainable growth and clear paths to profitability rather than speculative potential.

The largest exited unicorns via IPO in 2025 were a diverse group spanning various high-growth sectors, each bringing unique value propositions to the public market:

  • CoreWeave: The specialized cloud provider, focusing on high-performance computing for AI workloads, had a blockbuster IPO. Investors eagerly backed CoreWeave’s infrastructure play, seeing it as a critical enabler for the burgeoning AI industry. Its successful listing underscored the market’s demand for compute power dedicated to next-generation technologies.
  • Figma: The collaborative design platform’s IPO was met with widespread enthusiasm. After a previously scuttled acquisition attempt, Figma proved its standalone value to public investors, demonstrating strong user growth and a robust enterprise adoption model. Its public debut solidified its position as a dominant force in product design and creative collaboration.
  • Klarna: The Swedish "buy now, pay later" fintech giant finally made its long-anticipated public debut. Despite previous market skepticism surrounding the BNPL model, Klarna’s IPO capitalized on a stronger regulatory outlook and its diversified financial services offerings beyond just payments, attracting investors keen on the future of consumer finance.
  • Chime: The mobile-first challenger bank successfully navigated the public markets, appealing to investors looking for innovation in traditional banking services. Chime’s strong customer acquisition, low-cost operating model, and growing suite of financial products resonated well, signaling a maturing market for digital-native financial institutions.
  • Mixue Group: The Chinese beverage and dessert chain’s IPO was a testament to the enduring power of consumer brands in emerging markets. Its massive footprint, affordable offerings, and strong brand recognition across Asia made it an attractive investment, highlighting opportunities for growth outside of pure tech.

The Enduring Unicorn Overhang

Despite the significant increase in both M&A and IPO exits in 2025, the shadow of the "unicorn overhang" continues to lengthen. The Crunchbase Unicorn Board, a real-time tracker of billion-dollar private companies, paradoxically keeps growing. This persistent expansion is due to a greater number of companies achieving unicorn status each year than successfully exiting, creating a bottleneck for liquidity.

As we near the end of 2025, the board is approaching an astonishing $7 trillion in collective value, housing around 1,640 companies. These companies have collectively raised a staggering $1.16 trillion in capital, representing an immense amount of invested capital still seeking an exit. A particularly concerning statistic within this board is that 840 companies have not raised funding in three years, raising questions about their financial health, growth trajectory, and potential for future exits. These "stale" unicorns could represent a mix of companies that are quietly profitable but not growing fast enough for public markets, those struggling to find product-market fit, or those simply waiting out unfavorable market conditions with sufficient runway.

More than 800 of these still-private companies joined the unicorn ranks during the peak market frenzy of 2021 and into 2022. This cohort, often characterized by inflated valuations and "growth at all costs" mentalities, now faces immense pressure. Their investors, particularly those with older funds, are increasingly pushing for liquidity, creating a huge buildup of companies that will need to exit through either M&A or IPOs in the coming years. Failure to do so could result in difficult down rounds, strategic sales at lower valuations, or even outright failures, presenting a significant challenge for the venture capital industry.

Historically, IPOs were the primary driver of exits from 2017 through 2021, offering a clear path to public markets for high-growth companies. However, this trend dramatically slowed since 2022, contributing significantly to the current overhang. The renewed IPO activity in 2025 is a positive sign, but it’s clear that the market needs to accelerate further to address the sheer volume of mature unicorns. The growing anticipation surrounding a potential listing of a company as pivotal as Anthropic, rumored to go public as early as 2026, is building considerable excitement. Such a high-profile IPO, especially in the red-hot AI sector, could serve as a powerful catalyst, potentially leading to a more comprehensive rebound of the IPO markets next year and offering a much-needed outlet for the burgeoning unicorn board. The success of these bellwether companies will be crucial in restoring broader investor confidence and opening the floodgates for the next wave of public listings.

In conclusion, 2025 has emerged as a pivotal year for unicorn exits, with M&A setting new records for value and IPOs regaining their footing. This resurgence, driven by strategic acquisitions, renewed public market confidence, and a more stable economic environment, offers a glimmer of hope after several lean years. However, the ever-growing unicorn overhang remains a critical challenge, underscoring the ongoing need for robust exit avenues to provide liquidity for investors and sustainable growth for innovative companies. The stage is now set for 2026, with all eyes on whether the momentum of 2025 can be sustained and amplified, particularly through a fully revitalized IPO market, to address the impressive backlog of private market giants.