The landscape of high-growth investing has fundamentally shifted. Where once going public marked the pinnacle of startup success, today’s unicorns, companies valued at $1 billion or more, are increasingly choosing to remain private for extended periods.

This shift is not a sign of weakness; it is a reflection of strength. Unicorns now have access to abundant private capital and can strategically time their entry into public markets. For investors, this trend creates both challenges and new opportunities, giving rise to “growth equity investing.”

‍

The Shift in The IPO Lifecycle

Recent studies show that companies now go public at a far later stage, with the median age at IPO more than doubling over the past three decades. In 2025, some markets report median ages exceeding 15 years, compared with just six years in the late 1980s.¹ This demonstrates how much value creation is now happening before companies ever reach public markets.

The universe itself has expanded dramatically. As of 2025,  there are more than 1,500 unicorns worldwide, collectively valued at around $5.2 trillion², compared with fewer than 15 just a  decade ago. For institutions, this is not a niche corner of finance, it is a central and expanding opportunity set.

Founding to IPO for notable tech names (IPO)

‍

Why Unicorns Stay Private Longer

Several strategic factors explain why unicorns delay IPOs:

• Abundant  Private Capital: With private markets projected to grow from $13 trillion in 2024 to $20 trillion by 2030³ , companies can raise ample funding without going public prematurely.
• Operational  Flexibility: Public companies face significant regulatory burdens and quarterly scrutiny. Remaining private allows management to focus on long-term growth and innovation.
• Valuation Management: Companies can time their IPOs when market conditions are most favorable, ensuring they list from a position of strength.
• Strategic Control: Staying private enables founders and early investors to maintain greater influence over company direction.

Together, these dynamics mean that much of the value creation once seen post-IPO now happens pre-IPO, offering unique opportunities for investors who can access this stage.

The Scale of the Opportunity

For investors, the implication is clear, accessing unicorns before they go public has become increasingly important. The private growth phase represents a powerful engine of wealth creation.

An index designed by Morningstar PitchBook to track the Top 20 late stage venture-capital backed private companies, valued in excess of $1bn as shown around 5 times value increase over the past 10 years.

Morningstar PitchBook Unicorn Select 20 GR USD

The venture secondary market continues to expand, with global deal volume reaching more than $160 billion in 2024 and projected toapproach $200 billion in 2025.⁴ At the same time, an estimated $1.1 trillion in unrealized value remains locked in older venture funds, ensuring a deep pipeline of future opportunities.⁵ Liquidity solutions, whether through secondary transactions or continuation funds, are opening new avenues for institutions seeking exposure to unicorns.

‍

How Investors can Access Unicorns

There are several practical routes to gaining exposure:

• Growth and Venture Funds: Professional fund managers invest directly in late-stage companies, providing diversified access to high-potential names.
• Secondaries: Investors can participate in transactions where:
  • Employees or early investors sell direct shares.
  • Limited partners sell their fund interests.
  • Fund managers (GPs) restructure portfolios or extend fund lives. These structures provide flexibility and breadth of access
• Digital Platforms: New technologies are fractionalizing private fund interests and creating regulated marketplaces with lower entry points, expanding investor access.
• Co-Investments: In some cases, investors can partner alongside fund managers to gain targeted exposure to specific unicorns.

‍

Sector Spotlights: Where the Growth Is

Unicorn opportunities span multiple industries, with somesectors standing out for their innovation and momentum:

• Artificial Intelligence: AI unicorns reach billion-dollar valuations faster than any other sector. Companies such as OpenAI (valued at $500 billion) and Databricks ($87.5 billion) highlight the scale of opportunity n data, automation, and generative AI.
• Robotics and Automation: Figure AI ($38.3 billion) demonstrates how private markets are funding cutting-edge technologies that combine artificial intelligence and robotics to transform global industries.
• Space Technology: SpaceX ($423.8 billion) demonstrates how private markets fund ambitious, capital-intensive ventures that redefine  industries.
• Climate Tech: The number of climate technology unicorns has quadrupled in recent years, driven by investor demand for sustainable innovation.

These examples illustrate that unicorn investing extends beyond technology, spanning sectors aligned with long-term structural trends.

Risk Considerations and Due Diligence

• Liquidity  Constraints: Private investments involve longer lock-up periods and limited liquidity. Investors should maintain sufficient liquidity in other parts of their portfolios.
• Valuation Challenges: Private valuations can be less transparent and more volatile than public ones.
• Legal  and Structural Risks: Private market investments may involve non-transparent and multiple-layered level structures, creating potential legal and jurisdictional risks that could jeopardize the investors ownership rights.
• Concentration Risk: Many private growth investments involve concentrated positions. Diversification is key.

From Private Growth to Public Opportunity

The rise of growth equity investing is one of the most significant shifts in capital allocation. Unicorns are staying private longer, not to avoid IPOs, but to build stronger, more resilient businesses before entering public markets.

For financial institutions and business partners, the opportunity is clear, accessing unicorns during this private growth phase provides exposure to some of the most innovative and high-growth companies in the world. What was once the preserve of venture capital and large institutions is now accessible through structured funds, secondary markets, and digital investment platforms.

Success in this evolving landscape requires more than capital. It demands education, due diligence, and a long-term perspective. By identifying the right structures, partners, and frameworks, investors can capture the upside potential of tomorrow’s leading companies while ensuring alignment with their institutional mandates and goals.

‍

‍

Author

Saad Adada, CFA

‍

_Sources:

_{1.     https://www.ey.com/en_us/insights/ipo/trends}

_{2.     https://pitchbook.com/news/articles/unicorn-startups-list-trends}

_{3.     https://www.opalesque.com/711070/Private_markets_to_grow_from_today_to107.html}

_{4.     https://icapital.com/insights/private-equity/exploring-private-market-secondaries-across-different-asset-classes}

_{5.     https://www.theventure.city/reports/2025/vc-benchmark-q2-2025}