EquityZen Highlights Growing Investor Demand for Late-Stage Private Tech Access

According to a recent LinkedIn post from EquityZen, the company is highlighting data that suggests a structural shift in capital formation as private firms remain private for an average of nearly 16 years. The post cites CB Insights research indicating that private markets are increasingly functioning as a “new public” arena for growth companies.

The company’s LinkedIn post notes that some private unicorns are already valued above the median S&P 500 market cap, implying that substantial scale is being achieved before listing. EquityZen also references institutional support for secondary trading infrastructure, which may broaden access to late-stage private equity exposure for a wider investor base.

The post suggests that EquityZen, now part of Morgan Stanley, is positioned to benefit from rising demand for secondary transactions in pre-IPO names, particularly in AI and robotics. It reports a 200% year-over-year increase in first-time investors on its platform seeking exposure to these sectors before public offerings.

For investors, the data points cited could indicate expanding deal flow and fee-generating volume for intermediaries focused on secondary private market trading. If top AI startups are reaching $100 million in ARR with limited traditional market visibility, platforms like EquityZen may gain strategic importance as gateways to high-growth assets prior to IPO, potentially enhancing their long-term revenue prospects.

The post also underscores a broader industry implication: as more value creation occurs in private markets, traditional public equity benchmarks may capture a smaller share of early-stage growth. This dynamic may support continued institutional investment in secondary infrastructure and could intensify competition among platforms and banks seeking to intermediate these transactions.