Earlier this week on TechCrunch’s Equity podcast, audio producer Theresa Loconsolo and senior reporter Rebecca Bellan sat down with Jared Carmel of Manhattan Venture Partners. They dove in head first to the rapidly evolving landscape of startup funding and shared about the important role that retail investors play. The backlog of anticipated initial public offerings (IPOs) is increasing. Comments Smart growth Advocates say this could be a trend that sticks for the foreseeable future.
Carmel characterizes the current state of the startup ecosystem as a “once-in-a-generation opportunity. He points out that most startups will likely remain private much longer than anticipated. It’s exacerbated by a unique set of market forces. This long private equity cycle could fundamentally change how companies think about their growth and funding strategies.
Our conversations really drove home how secondary market feedback loops can have a dramatic effect on IPO timelines. In reality, it might lengthen them by up to 2 decades. Retail investors, who made up 86% of total transaction volume in Q4 2024 on platforms like EquityZen, are increasingly influential in this dynamic. They now have access to sophisticated financial tools once only available to institutional investors. As a consequence, they are becoming dominant players in the secondary offerings.
Rebecca Bellan electrified us with her scoops on Tesla, autonomy and AI, and shaking up the regulatory scrutiny of Big Tech. In her Twitter bio, she states that she has personally invested in Ethereum. Her insights provided that important outside-advocate perspective. In particular, they pointed out the ways in which retail investors are sharp, swimming in an ocean of “informational asymmetry” markets. This phenomenon can create traps for the unwary retail investor, especially in the context of secondary offerings that are not always in the investor’s best interests.
Carmel went on to explain why this trend matters, calling it a “pressure relief valve” for startups. This simple mechanism allows companies to leverage retail investment. What’s more, they can accomplish this without the pressure of a highly dilutive and time-consuming IPO process.
Equity, TechCrunch’s flagship podcast, have helped bring these discussions to the forefront. It gives deep insight on the increasingly important crossroads between technology, finance and investment strategies. You can keep up with the podcast on X and Threads at @EquityPod.
Theresa Loconsolo resides in New Jersey and holds a bachelor’s degree in Communication from Monmouth University. She leads consistently insightful productions that reveal what’s been a rapidly transforming landscape. As the landscape shifts, both listeners and investors will need to stay informed about potential opportunities and challenges within the startup ecosystem.
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