Reference URL: https://www.surveymonkey.com/r/2M5BYHS
Listed (public) equity provides the bedrock for the valuation many other growth assets, similar to the function sovereign debt plays for corporate bonds. It is also the focus of a huge amount of analysis and regulation. However, the secular decline in the number of IPOs and listed companies is well-documented.
Increasingly, new companies either do not need much capital, or can raise it in a less burdensome manner, giving up less control, in the private markets than via a public listing. As there is a natural attrition rate in the number of listed companies, a constant supply of new public listings is necessary to maintain public market integrity. The unexpected increase in IPOs in 2017 further confuses the picture, although set in a historical context, the number of listed companies remains low.
While some do not consider this a concern, since capital formation is still happening, albeit along different channels, others consider there to be downsides to capital formation outside public markets, such as:
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