Germany’s clean energy unicorn, 1Komma5 Grad, has hit the brakes on its plans to debut on the NASDAQ. The company joins Swedish fintech giant Klarna in reassessing a U.S. listing, following increased volatility and market disruption caused by the Trump administration’s aggressive stance on renewable energy and global trade.
Founded with the vision of enabling a greener future, 1Komma5 Grad leverages artificial intelligence to deliver solar power, energy storage, and e-mobility solutions. The company recently reached a valuation of over $1 billion after a fresh funding round, solidifying its position as a German unicorn. CEO and founder Philipp Schroeder confirmed that the firm had originally aimed to go public in 2025, but recent geopolitical and economic shifts forced a change in course.
“Due to recent tariffs and market reaction, we have postponed IPO plans to review the timeline,” Schroeder said in a statement to Reuters.
Tariffs and Trade Tensions Erode Confidence
Markets have entered a phase of deep uncertainty. President Trump’s administration introduced tariffs targeting green energy technologies and equipment, citing a need to protect American manufacturing and energy independence. This move, however, triggered a retaliatory stance from several countries, sparking fears of a global tariff war.
The ripple effects hit startups hard, particularly those in renewable energy and tech sectors that depend on international supply chains and cross-border collaborations. U.S. investors have also shown caution amid the chaos, leading European firms like 1Komma5 Grad and Klarna to hold off on IPOs until stability returns.
Klarna Also Hits Pause
Klarna, the Swedish payments company known for its “buy now, pay later” model, had been eyeing a U.S. IPO with an anticipated valuation of over $15 billion. Analysts viewed Klarna’s listing as a bellwether for other tech firms planning U.S. entries. However, Klarna froze its plans in response to the same market disruptions that influenced 1Komma5 Grad’s decision.
Market players and analysts now wonder if the wave of U.S.-bound IPOs from Europe has already crested. The Trump administration’s shift toward nationalist economic policies has made many founders question whether the U.S. still represents the right launchpad for global expansion.
“Losing Appeal”: U.S. No Longer the Top IPO Destination
In recent years, European startups frequently looked westward to tap into U.S. capital markets. These firms sought the liquidity, valuation potential, and faster scaling opportunities associated with a NASDAQ or NYSE listing.
“When we started and actually reached unicorn status already in 2023, the overall environment for clean tech and technology companies out of Europe to actually still be listed at NASDAQ was an option that was suitable,” Schroeder said.
But the U.S. now seems less attractive. The combination of market volatility, shifting trade policies, and increasing scrutiny toward foreign companies has introduced layers of risk that didn’t exist a year ago.
Alternatives on the Horizon
While U.S. markets lose their luster, other exchanges are stepping up. The London Stock Exchange, Frankfurt, and Euronext have started to pitch themselves as viable alternatives, especially for European startups wary of U.S. instability.
Euronext’s CEO recently commented that President Trump’s unpredictable policies made U.S. markets resemble those of an emerging economy rather than a developed one. That’s a stinging critique, and one echoed by several executives.
Gianni Cuozzo, CEO of Italian cybersecurity startup Exein, acknowledged a growing hesitation. His company, valued at around €500 million ($545 million), had previously considered a U.S. IPO between 2027 and 2030. Now, Cuozzo isn’t so sure. “The U.S. is no longer the only place to look for a tech IPO,” he stated. Exein, which specializes in embedded cybersecurity solutions, is currently weighing its options.
Challenging the U.S. IPO Myth
U.S. listings once offered an aura of prestige, liquidity, and access to the world’s largest investment base. But new data undermines those assumptions. The London Stock Exchange recently released a report aimed at “mythbusting” the U.S. IPO narrative.
The report revealed that out of 20 British companies that raised over $100 million through U.S. IPOs since 2014, nine delisted, and seven lost an average of 85% of their value. Only four companies out of the 20 showed positive returns.
These statistics paint a different picture of the U.S. market—one marked by risk, inconsistency, and steep regulatory hurdles for non-U.S. firms. While the S&P 500 index and NASDAQ appear attractive on the surface, inclusion and sustained performance remain difficult for foreign startups to achieve.
What This Means for the Future of European IPOs
The postponement of 1Komma5 Grad’s IPO isn’t just a one-off decision—it signals a broader shift in the strategy of European tech companies. Many now realize that aligning with politically stable regions and investor-friendly markets could offer long-term benefits over chasing valuation spikes in volatile markets.
Clean tech, in particular, needs supportive policy environments. Trump’s aggressive rollback of green energy subsidies and his pro-fossil fuel rhetoric have shaken investor confidence in the U.S. clean energy sector. For companies like 1Komma5 Grad, whose mission rests on decarbonization, sustainability, and green energy adoption, these moves represent a serious conflict with their core values and business models.
Looking Ahead
1Komma5 Grad remains committed to its mission of empowering homes and businesses with sustainable, AI-driven energy systems. Its delay in IPO plans reflects prudence, not retreat. The company now plans to monitor global market conditions while exploring other growth avenues.
Schroeder and his team believe that clean energy remains the future—despite policy headwinds. With backing from investors who share that vision, 1Komma5 Grad continues to expand its footprint across Europe and beyond. IPO or not, the company stands firm in its resolve to drive the energy transition.
Meanwhile, the broader tech landscape in Europe is evolving. Founders, investors, and policy makers now understand that listing success requires more than hype and ambition. Stability, alignment with national policies, and access to local investors may drive the next phase of European startup success.