Startups Delay Going Public with Alternative Funding
Startups are staying private longer due to the rise of alternative capital sources like private equity, venture capital, and private credit, which provide ample funding and reduce the need for IPOs. The median age of companies going public has increased from 10 to 13 years since 2018, with private companies now often reaching higher revenues and valuations before going public. The growth of private markets and digital share marketplaces is also enabling liquidity without IPOs, although this trend may impact future returns for investors.