environment in addition to the flow of capital from public to private markets . This has resulted in private companies being able to raise significant capital without having to go public .
“ Over the past decade , we ’ ve seen increasing amounts of capital flow into the private markets , and we ’ ve encountered several other factors that have led to this dynamic situation , where companies are now staying private for much , much longer .”
“ Now , the average time to enter the public market for a venture-backed tech startup is much longer and these companies are valued in the billions , many in the tens of billions .
Furthermore , some are able to raise enough private capital to not even necessarily need to pursue an IPO and rather enter the public markets through a direct listing .”
Even though it may take a company several years to reach the point where pursuing the public markets is a possibility , preparing for that process requires careful planning . Alternatively , while a company may wish to remain private , it may need to address its equity structure and liquidity strategy to ensure it remains an attractive option for its investors and employees as well as navigate the current economic climate .