Germany’s cleantech unicorn 1Komma5 and Sweden’s fintech giant Klarna are pausing their highly anticipated U.S. IPO plans, citing increased market uncertainty fueled by trade tensions and policy shifts in the U.S.
1Komma5, which leverages artificial intelligence to deliver solar energy, battery storage, and e-mobility solutions, had been preparing for a potential listing on the NASDAQ in 2025. However, recent fundraising efforts pushed its valuation above $1 billion, making it one of Germany’s elite unicorn startups. Despite that milestone, the startup is hitting the brakes on its IPO plans.
“Due to recent tariffs and the volatile market reaction, we’ve decided to postpone the IPO and reassess our timeline,” founder and CEO Philipp Schröder told Reuters.
Their cautious move reflects broader hesitation across the European tech sector. Klarna, which was reportedly eyeing a valuation north of $15 billion through its U.S. debut, has also frozen its IPO strategy. Analysts previously viewed Klarna’s listing as a potential spark for a new wave of European tech IPOs in the U.S.
But that momentum may now stall.
Tariffs and Policy Shocks Shake Confidence
President Trump’s renewed trade policies and green energy push have triggered instability in financial markets. These shifts are pushing some tech companies to reconsider their exposure to U.S. volatility.
On Wednesday, the head of Euronext, a major European stock exchange, warned that erratic U.S. policy now makes the country resemble an emerging market more than a stable developed one. Emerging economies are often known for leveraging tariffs to protect nascent industries—an increasingly familiar tactic in today’s U.S. landscape.
European Startups Question the U.S. IPO Route
For years, European tech startups looked to the U.S. markets for better access to capital, quicker scale-ups, and looser regulatory environments. But the ground is shifting.
“When we reached unicorn status in 2023, NASDAQ still felt like the natural next step for a clean tech company from Europe,” said Schröder. “Now, the environment has changed dramatically.”
That change is prompting many founders to explore alternative listing venues beyond the U.S.
Italian cybersecurity startup Exein, valued at around €500 million, previously hinted at a U.S. IPO sometime between 2027 and 2030. But CEO Gianni Cuozzo said the company is now taking a wait-and-see approach. “The U.S. is no longer the only viable destination for a tech IPO,” Cuozzo said.
London Stock Exchange Pushes Back on U.S. IPO Hype
Amid the growing skepticism, the London Stock Exchange recently issued a stark warning. In a “mythbusting” investor note, the LSE cautioned U.K. firms against assuming a U.S. IPO guarantees success. It highlighted that out of 20 British companies that listed in the U.S. since 2014 and raised at least $100 million, nearly half have since delisted. Even more concerning, seven of those companies are trading down by an average of 85%.
Only four companies out of the group are currently trading above their IPO prices.
As the U.S. Loses Its Shine, Europe Reassesses
The growing unpredictability of the U.S. market, combined with disappointing outcomes for many European IPOs stateside, is forcing founders to reevaluate their options. With companies like Klarna and 1Komma5 pressing pause, and Exein choosing patience, it’s becoming clear that Europe’s next wave of tech IPOs may look very different.
As economic volatility and trade politics continue to reshape investor sentiment, more European tech firms may begin to view homegrown exchanges or alternative global venues as safer bets.
