Tentative IPO Rebound Threatened by DeepSeek-Fueled Volatility

When US tech stocks were crushed by the emergence of DeepSeek this week, already-cautious investors found one more reason to be skeptical about buying into venture-backed initial public offerings, according to PitchBook.

IPO activity for companies backed by venture capital firms has stalled over the last three years, reaching its slowest level since 2011, according to a PitchBook report from Jan. 24. Now, a spike in stock-market volatility may further complicate hopes for a rebound in public listings, which had already been in question.

Investors were spooked by the emergence of DeepSeek, a Chinese AI model that appears to be ...