Even as the IPO market begins to show signs of recovery, startups are choosing to stay private for longer periods of time, fueled by alternative capital. Data from Renaissance Capital shows that the median age of companies going private has increased from 10 years in 2018 to 13 years in 2024. This trend is further supported by a study from the University of Florida, which found that the average age of companies going public has more than doubled between 1980 and 2024.

The surge in alternative investments and private capital, from sovereign wealth funds to venture capital, is providing enough capital for today’s tech startups. Private equity assets under management have been increasing at over 15% annually and are expected to double to around $25 trillion in the next decade. With new digital marketplaces allowing employees to sell shares of private companies, the need for going public to raise capital is diminishing. While private equity and venture capital firms argue that the best growth stage for startups is in the early years, the influx of capital and high valuations in recent years may signal a turning point for the industry.