Shift From Public to Private Markets Highlights Growing Focus on Pre-IPO Opportunities

According to a recent LinkedIn post from EquityZen, the number of public companies has fallen by roughly 50% over the past three decades, while private companies have expanded by 43%, citing Fortune data. The post suggests that investors who limit their focus to public markets may miss early-stage opportunities and emerging sectors that develop before an IPO.

The company’s LinkedIn post highlights key distinctions between public and private investments, noting that public stocks typically offer instant liquidity and broad accessibility, whereas private equity may provide higher return potential but with longer time horizons. It also emphasizes material differences in objectives, costs, expenses, and suitability, framing private market exposure as inherently riskier, with possibilities of total loss and illiquidity.

For investors, this messaging points to a structural shift in where corporate growth and value creation may be occurring, with more activity remaining in private markets for longer. If more capital continues to migrate toward private assets, platforms positioned around private equity access, such as EquityZen, could see increased relevance, while traditional public-market-only strategies may face relative return pressure over the long term.

At the same time, the post’s prominent risk disclosures underscore regulatory and fiduciary sensitivities around marketing private investments to a broader audience. This cautionary framing may signal that any growth in private market participation will likely be tempered by suitability constraints and investor education needs, potentially moderating the pace at which retail and smaller accredited investors increase exposure to this asset class.