The 2025 funding landscape

While equity market activity levels were very strong in 2024, the IPO activity in the UK remained muted. This was largely due to a lack of confidence and certainty - both of which are critical for successful IPOs. However, there was some noteworthy activity, including strong candidates such as Raspberry Pi and Astera Labs. 
 
Looking to the outlook for 2025, we’re starting to see corporate interest rise, supported by increasing engagement from UK institutional investors who are eager to evaluate promising candidates.  

With inflation settled, improved confidence levels and interest rates more stable than they were beginning of the year, we can expect the second half of 2025 to have more levels of activity from an IPO perspective. It should be on the table for businesses when looking at equity options, particularly as market conditions stabilise. 

During our recent Beyond Now event, Tim Davis, Regional Head of Primary Markets at the London Stock Exchange Group, emphasised that preparation is key for businesses looking to list. 
 
"The companies who come to us that really stand out are the ones that have a plan. They know how it works, and they've done all their homework. Any buy-side fund manager will tell you they've always got money for the right proposition," he shared. 

"The most common conversation we have is about valuations. We are still operating in a buyers' market. That's not to say they won't pay a premium for a premium proposition, but they will think very carefully before doing so. You need to be clear on why you want a particular investor, and why they should want to invest in you."