"Record levels of private capital and the recent and rapid rise of VC-funded unicorns suggest to some that public markets are a thing of the past, a holdover from the capitalism of yesteryear. Financial news of the past two decades is littered with stories of companies delaying IPOs and growing despite it - Meta, Uber, Airbnb and the like. Some still remain private, most notably Elon Musk's SpaceX."
"Why would a company like Klarna choose to go public? Public companies have to deal with public investors, follow specific rules on governance, and disclose extensive information. Klarna had no trouble accessing private capital in the past. Surely some of their original backers were looking for liquidity, but there is plenty of private liquidity around if that is all they need."
"So why go public? The answer is that there are great benefits to being a listed company in a deep, global market. While there are plenty of capital options besides going public, public markets help companies grow up. That discipline and credibility, as well as the opportunity for founders, employees, and investors to benefit from the value created, still make public markets the destination of choice."
Record levels of private capital and many VC-funded unicorns have reduced IPO frequency, enabling extended private growth for companies like SpaceX and numerous delayed listings. Some firms and investors prefer private markets to avoid public scrutiny, governance rules, and disclosure burdens. Listing on a deep, global public market provides discipline, credibility, broader capital access, and liquidity for founders, employees, and early investors. Global public market capitalization has grown substantially, exceeding $90 trillion and about 112% of global GDP. Public markets remain a valuable route for scaling businesses and realizing created value.
Read at Fortune
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