Hello Lykkers, Let's take a moment to think about something that doesn't often make the headlines, yet affects where wealth is created and who has access to it: the divide between private and public markets.

We're used to thinking of public markets—the stock exchanges like the NYSE or NASDAQ—as the main arena for business growth.

But increasingly, the real action may be happening somewhere else: in private markets, behind closed doors, far from the daily swings of share prices.

This article explores the growing shift in capital, innovation, and influence from public to private markets—and what that means for investors, companies, and the future of financial access.

<h3>Public vs. Private Markets: Understanding the Basics</h3>

A public company is one whose shares are traded openly on stock exchanges. These companies are required to disclose their financial information, meet regulatory requirements, and answer to a broad base of shareholders.

In contrast, private companies are owned by founders, private investors, venture capitalists, or private equity firms. They are not listed on public exchanges and are not required to disclose financial information to the public.

For decades, the public market was where companies went to raise large-scale capital and scale operations. However, this dynamic has shifted significantly over the last 20 years.

<h3>Why More Companies Are Staying Private Longer</h3>

In the late 1990s, the average age of a company going public was around four years. Today, it's closer to 10–12 years. Some companies are choosing to stay private indefinitely. This shift is driven by several key factors:

<b>1. Avoiding Regulatory Burden</b>

Going public comes with complex regulatory requirements, legal risks, and constant scrutiny from shareholders and analysts. For many founders and executives, staying private means avoiding short-term pressures and focusing on long-term strategy.

<b>2. Abundant Private Capital</b>

The explosion of venture capital, private equity, and sovereign wealth funds has flooded private markets with funding. Startups no longer need to go public to access billions in capital. Late-stage private funding rounds often exceed what companies could raise through IPOs.

<b>3. Preserving Control</b>

Staying private allows founders to maintain tighter control of their company's vision and operations. In public companies, shareholders and boards often push for decisions that favor short-term stock performance over long-term value creation.

<b>Is the Real Growth Happening Outside the Public Market?</b>

There's a growing consensus among investors and analysts that some of the most dynamic growth is occurring in private markets. Here's why:

<b>- Innovation is concentrated in private firms</b>

Emerging technologies in AI, biotech, and clean energy are being developed and scaled primarily within private startups before entering the public eye.

<b>- Private valuations are soaring</b>

There are now more than 1,200 "unicorns" (private companies valued at over $1 billion), many of which are more valuable than their public counterparts in similar sectors.

<b>- Private markets offer longer-term horizons</b>

Companies in private markets can focus on development and reinvestment without the distraction of quarterly earnings reports or shareholder meetings.

This private growth is shaping industries and influencing public markets downstream—but the average retail investor often has limited access to these opportunities.

"Private markets have become the primary engines of innovation and growth. Investors need to look beyond public exchanges to capture the next wave of value creation." — Dr. Emily Chen, Senior Economist, University of Chicago, USA.

<h3>What This Means for Investors and the Future of Access</h3>

Historically, access to private markets has been limited to institutional investors, venture capitalists, and high-net-worth individuals. This means that much of the wealth generated during the early, high-growth stages of a company is unavailable to the broader public.

However, things are slowly changing:

<b>- Pre-IPO platforms</b> and equity crowdfunding services are emerging, allowing qualified individual investors to buy into private companies earlier than before.

<b>- Regulatory changes</b> in some countries are beginning to open up access to private investment opportunities for a wider range of investors.

<b>- Mutual funds and ETFs</b> are starting to include exposure to late-stage private companies, offering retail investors indirect participation in private growth.

Still, the divide remains significant—and as long as the majority of innovation and wealth creation happens privately, questions of access and fairness will continue to rise.

<h3>Final Thoughts</h3>

The private vs. public market divide is no longer just a technical distinction—it's reshaping how companies grow, how capital is allocated, and who gets to benefit.

For investors, it's a reminder to look beyond traditional public stocks when considering where the next wave of innovation and value creation will come from. For policymakers, it's a signal that access to private markets is a growing issue of financial inclusion.

The stock market may still be the most visible symbol of capitalism, but in many ways, the real growth is happening where fewer people are looking.