80% of IPO Companies Are Profitable! Angel Round Reveals the Reality Behind Startup Listings

Background and Objectives of the Survey

Angel Round Inc. has released the findings of an independent survey covering 464 companies that completed an IPO (Initial Public Offering) on the general market between 2021 and 2025. The survey analyzed the profit and loss status of companies based on their net income immediately prior to listing, aiming to examine the gap between the stereotypical startup market narrative—that aggressive, loss-making upfront investment is the sole source of rapid growth—and actual market realities.

The High Proportion of Profitable Companies in the IPO Market

The survey revealed that out of the 464 companies analyzed, 367 firms (79.1%) were profitable in the fiscal year immediately preceding their listing. Looking at the breakdown by year, the profitable ratio peaked at 87.9% in 2025 and reached its lowest point at 72.5% in 2022. Across the five-year period, the proportion of profitable companies consistently remained well above the 70% threshold. Profitability in this study is defined based on net income in the term immediately prior to listing.

The Perspective of "Solid Ventures" Supporting Stable Growth

Takumi Ogoshi, Representative Director of Angel Round, points out that these results should not be viewed merely as a binary measure of superiority between profit and loss. The company defines a "Solid Venture" as a management state built upon a stable cash engine that continuously cycles through the challenge and withdrawal of new business initiatives. This suggests that startup-style strategies (upfront investment) and profitable management can indeed coexist.

Free Data Provision and Book Publication

Angel Round is offering the raw data compiled for this survey free of charge for a limited time until October 18, 2026. Additionally, a new book by Takumi Ogoshi, which encapsulates the management philosophy underlying this research—titled Solid Ventures: Management Practices for "Failure-Proof" Resilience Adopted by 80% of Profitable IPO Companies—is scheduled to be published by Shoeisha on October 28, 2026.