a16z PodcastPrivate markets now capture 55% of value creation vs 12% decades ago
“If you look at the recent crop of IPOs in the last five years, 55% of their market cap creation happened in the private markets.”
only 12% of it was happening in the private markets. If you look at the recent crop of IPOs in the last five years, 55% of their market cap creation happened in the private markets. Wow. 45% happened in the public markets. So there is a massive shift that's taken place in terms of where value creation happens. That's benefited us. In terms of pricing, we've invested in a portfolio of of great companies. I've listed all the some of our investments. Some of our biggest investments are are companies like Databricks and SpaceX and Waymo and OpenAI and Anduril, you know, and Stripe and Flock Safety and and and companies like that.
About this clip
A dramatic shift has occurred in where tech value creation happens, with private markets now capturing 55% of value creation for recent IPOs compared to just 12% in previous decades. The speaker discusses how this trend has benefited private investors and highlights their portfolio of major private companies including SpaceX, OpenAI, Databricks, and Stripe.
Why this clip
This reveals a fundamental structural shift in tech markets with specific data showing the dramatic reversal from public to private value creation.
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