European tech companies are rethinking their plans for initial public offerings (IPOs) in the United States due to recent market volatility. German energy startup 1Komma5 Grad and Swedish fintech Klarna have both put their US listing plans on hold.
1Komma5 Grad, valued at over $1 billion after recent fundraising, had been aiming for a NASDAQ IPO in 2025. However, the company’s founder and CEO, Philipp Schroeder, told Reuters that “due to recent tariffs and market reaction, we have postponed IPO plans to review the timeline.”
The uncertainty surrounding President Trump’s renewable energy and trade policies has roiled markets, causing tech firms to freeze dealmaking. Klarna, which was potentially valued at over $15 billion, has also put its US listing on hold.
The head of Euronext, the pan-European stock exchange operator, noted that the volatility and uncertainty brought about by Trump’s policies make the US look like an emerging market rather than a developed country. This shift in perception is causing European tech startups to reconsider their listing options.
Alternative Listing Venues
“The US is no longer the only place to look for a tech IPO,” said Gianni Cuozzo, CEO of Italian tech startup Exein. Exein, which provides embedded cybersecurity, is valued at around $545 million and had previously considered a US listing between 2027-2030.
The London Stock Exchange has issued a “mythbusting” note warning British companies that inclusion in the S&P 500 index can be “extremely challenging” for non-US companies. The note highlighted that out of 20 British companies that listed in the US since 2014 and raised at least $100 million, nine have delisted and seven are trading down 85% on average.
Conclusion
The current market volatility has led European tech firms to reassess their US IPO plans. With the US market becoming less appealing, companies are now considering alternative listing venues. This shift may have significant implications for the tech industry, as companies explore new options for liquidity and expansion.
