It’s been another tepid year for IPOs. Market volatility has put plans on hold. It’s a new reality that looks unlikely to change. Companies staying private for longer should be a rising tide for all private markets. But it’s recalibrating the fundamentals of VC investing. The average hold period for $500m IPO exits is now 11.5 years, according to PItchbook, deepening the J-curve. Capital markets also have a habit of undervaluing VC-backed companies at listing, when compared with previous private funding rounds. Is it time to rethink what liquidity looks like?
