The article discusses the shift away from initial public offerings (IPOs), traditionally viewed as a sign of corporate success. Dmitrii Khasanov, an expert in investment strategies, explains that companies like SpaceX and Stripe have achieved significant valuations without going public. The decline in IPO popularity is tied to the growth of private capital sources, which have created a robust ecosystem for funding. This allows companies to sidestep the scrutiny of public markets and offers them greater flexibility in operations and strategy.
The IPO process, which was once almost mandatory for large companies, has lost its appeal... Historically, going public provided unparalleled access to capital.
Khasanov attributes this trend to a fundamental reshaping of risk and reward... private capital is abundant, and companies no longer need Wall Street's validation.
The withdrawal from public markets is explained by several factors. First, maintaining private ownership allows companies to avoid quarterly profit and loss reports.
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