Morgan Bender

a16z Podcast | The Rise of the Quasi-IPO

Scott Cooper, Morgan Bender, Benedict Evans

A comprehensive analysis comparing inflation-adjusted funding data from the 1950s to the present reveals that current valuations reflect a structural shift toward late-stage private financing rather than a public market bubble. Companies are now deferring IPOs until achieving significantly higher revenue thresholds, forcing venture capital returns to depend increasingly on robust secondary markets as public liquidity options diminish. This transition has reconfigured the risk profile by concentrating growth phases in private equity and reducing the scale of early-stage failures, although it introduces new challenges regarding future capital realization for investors.