Why Some Startups Choose to Stay Private Longer Than Ever
Companies are waiting longer to go public than they used to. Here's what's actually driving that shift.
Startups today commonly stay private for well over a decade before going public, if they go public at all, a significant shift from earlier decades when reaching the stock market happened much sooner.
Why staying private has become more attractive
Abundant private funding from large investment firms has reduced the need to go public just to raise significant capital, while staying private avoids the quarterly public reporting pressure and scrutiny that comes with being a publicly traded company.
What this means for employees and early investors
Staying private longer means employees holding stock options often wait much longer for that equity to become liquid and spendable, which has pushed some companies to offer employees ways to sell some shares privately before an eventual public offering or acquisition.