U.S. software unicorn creation has outpaced IPO and M&A volume; AI isn't a panacea for all startups

The article analyzes a significant backlog of 340+ U.S. software unicorns created since 2020 against minimal exit opportunities (only 22 IPOs and 2 M&A deals >$1B in 2024), using ServiceTitan's upcoming IPO as a litmus test for whether the public markets will accept mediocre-by-historic-standards financial metrics. ServiceTitan's 24% revenue growth and near-breakeven profitability represent a new threshold for IPO-readiness in a post-2021 market, which could unlock liquidity for hundreds of stuck late-stage companies if the IPO succeeds.