The steady decline of public companies and the growing trend of businesses choosing to stay private is a fascinating trend to look at.
As a growth company founder, I find it particularly interesting because it serves as both a temperature check on the broader economy and an opportunity for self-reflection — especially when evaluating the long-term direction and capital strategy of our business.
These trends raise important questions:
“Why are so many companies staying private?”
“As a founder, what is their business plan for longevity?”
Let’s look at a few of the underlying details:
📉 Fewer Public Companies Than Ever Before
In the U.S., the number of publicly listed companies peaked at over 7,400 in 1996. Today, that number has dropped to fewer than 4,000 — a decline of nearly 50% over the last few decades.
Source: Dartmouth Tuck School of Business (in footer)
The UK mirrors this trend: the number of companies listed on the London Stock Exchange fell from 1,554 in 2012 to 1,156 by 2024. Source: Financial Times
This decline is not due to a shortage of businesses — quite the opposite. The private market has exploded with activity. Many companies are choosing to scale privately and, in doing so, are remaining out of the public spotlight for far longer than they would have a generation ago.
🧭 Why Are Companies Staying Private?
Here are some of the core reasons driving this shift:
1. Private Capital The last two decades have seen an unprecedented rise in the availability of capital from venture capital firms, private equity funds, institutional investors, and family offices. Today, businesses can potentially raise hundreds of millions — even billions — without ever needing to tap the public markets.
We’re also seeing the emergence of “community rounds” and regulated crowdfunding efforts, giving companies the ability to raise capital from a wider audience without public listing.
➡️ There are now over 140,000 private companies worldwide generating $100M+ in annual revenue, compared to only 19,000 public ones at that size. Source: Hamilton Lane
2. High Cost and Complexity of IPOs Going public isn’t cheap. Legal, accounting, regulatory, and underwriting costs — not to mention ongoing compliance burdens — can be significant deterrents, particularly for mid-sized companies.
There’s also the added complexity of satisfying short-term market expectations, analyst scrutiny, and activist investor pressure — often at the expense of long-term strategic execution.
3. Desire for Long-Term Control Remaining private allows founders and leadership teams to retain more control over vision, culture, and decision-making — without being beholden to quarterly earnings calls or the whims of public market sentiment. Many value the ability to think long-term and build at their own pace.
4. Tech Companies Delaying IPOs In the 1990s, many tech firms would go public after just 4–5 years. Today, the average time to IPO for a high-growth tech firm has more than doubled, with many waiting 10–15 years or more, often reaching “unicorn” status ($1B+ valuation) before even considering a listing. Source: Hamilton Lane
🔄 The Bigger Picture
This long-term trend has reshaped how investors access high-growth opportunities. Where public markets once offered the most direct path to participate in a company’s growth, much of that value creation now happens before an IPO — if one ever occurs.
As a result, understanding and engaging with the private capital landscape is more important than ever. It provides a window into innovation, scale, and momentum — often before the mainstream takes notice.
That’s why from day one, we’ve prioritized giving our own community the opportunity to invest in CalTier and grow with us. While we still have a long road ahead, we’re steadily checking off the milestones on our roadmap — and we expect that momentum to continue.
Right now, our focus is on expanding our portfolio, launching additional funds to offer more choice for our investors, and introducing complementary financial services. We’re also enhancing our technology, looking at incorporating AI tools where they bring real value, and strengthening our partner network.
None of this happens overnight — it takes time, capital, and commitment. Thankfully, our investor community has been with us every step of the way, and we’re incredibly proud to keep building with their support.
Matt
Sources:
https://www.tuck.dartmouth.edu/news/articles/where-did-all-the-public-companies-go
https://www.ft.com/content/a1d1c8ab-2061-4380-9a6f-a82ee24fbed6
https://www.hamiltonlane.com/en-us/insight/staying-private-longer
