EXPLORINEER
en

Archive — US — techcrunch

Forerunner’s long game: As startups stall before IPO, all options are on thetable

Forerunner Ventures, led by Kirsten Green, reflects on the shift away from traditional IPOs as many consumer startups face delays in going public. With successful companies like Chime and Ōura in their portfolio, Forerunner embraces the growing secondary market for managing liquidity, emphasizing growth over quick exits in a changing investment landscape.

Key points

  • Forerunner Ventures has invested in several notable consumer startups including Warby Parker, Bonobos, and Glossier, none of which completed a traditional IPO.
  • Startups like Chime and Ōura demonstrate strong valuations, but IPO timelines are shifting, as indicated by Chime's confidential filing and Ōura's lack of IPO plans.
  • Kirsten Green, the founder, believes traditional IPOs are becoming less relevant, stating that investors are adapting to the new landscape with increased reliance on the secondary market for liquidity.
  • The secondary market allows for price discovery and has proven beneficial for venture capital firms like Forerunner, allowing more participants to set the valuation.
  • Forerunner's investment strategy focuses on early-stage companies and adapting to changes in consumer behavior, with an emphasis on growth and measuring success beyond quick public offerings.

Why it matters

  • The shift from traditional IPOs to alternative routes reflects broader IT trends toward private equity and flexible financing options for tech startups.
  • As of 2025, many companies prefer SPACs and direct listings over traditional IPOs, continuing to reshape how startups approach market entry.
  • The reliance on secondary markets is indicative of a longer trend where venture capital firms are adopting more patient investment strategies, aligning with evolving economic conditions.

Forerunner Ventures exemplifies the evolving startup landscape, where a pivot away from traditional IPOs to alternative financing channels reflects a broader trend of patience and strategic growth in venture capital investments.