The billions of dollars hauled in by numerous high-profile companies in private investing rounds is sparking a debate on Wall Street: How long can firms stay private at eye-popping valuations before they have to IPO?
Large private companies are raising billions in private funding, delaying IPOs and keeping the IPO market subdued. This trend is driven by investors eager for early stakes and companies seeking to avoid public market volatility. While beneficial in the short-term, this strategy has limitations and many companies will eventually need to pursue IPOs for shareholder liquidity. The IPO market has been slow since 2022, with many recent IPOs performing poorly.
