Tariff Uncertainty Delays IPOs, Grips Silicon Valley

The anticipated wave of initial public offerings (IPOs) in Silicon Valley has been significantly delayed due to market volatility stemming from new U.S. tariffs. Major companies like StubHub, Klarna, and eToro have paused their IPO preparations, with some, such as Klarna, hoping to proceed once the market stabilizes. This situation has raised concerns among venture capitalists, who fear that prolonged delays could lead to a liquidity crisis, hindering their ability to fund future ventures. The atmosphere in Silicon Valley has been compared to the uncertainty felt during the early stages of the COVID-19 pandemic, with many startups experiencing heightened anxiety about their financial futures. Tariffs are expected to particularly affect businesses involved in hardware, international trade, and AI, possibly leading to increased operational costs. Overall, the current climate poses a significant challenge to the startup ecosystem and its funding dynamics.