AI-Linked IPOs Propel Private Market Investment Surge

A wave of successful initial public offerings is sparking increased interest in private companies, as investors seek exposure to AI-related firms before they go public. Notable gains from companies like CoreWeave Inc. and Figma Inc. have fueled this trend.

Trading volume on private markets like EquityZen Securities has more than doubled, and Rainmaker Securities saw a threefold increase in buy orders from the first to the third quarter.

The volume of shares traded on platforms where early employees and venture funds sell stakes is much smaller than public markets, yet it reflects the growing investor desire to capture IPO gains.

Glen Anderson, CEO of Rainmaker Securities, noted that while investors have explored AI opportunities in public markets, significant innovation is occurring in private markets.

The demand for private companies is rising as public companies decline. The number of listed companies in the US has halved since 2000, while private venture-backed companies have increased 25-fold. Private capital assets grew to $22 trillion in 2024, more than doubling since 2012.