Gen Z seeks private market access

Gen Z investors chase private tech powerhouses as IPOs slow and access to private equity remains gated.

Gen Z Investors Miss a Generation-Defining Moment

OpenAI and SpaceX have remained private while venture capital funds keep swelling, with global startup funding projected to hit about $400 billion this year. In the last decade private rounds have tripled, and public listings have become rarer as companies delay IPOs for years. Jay Ritter notes that the average time to go public has grown, and when IPOs do occur, prices can be high and liquidity limited. Fewer public names and higher price tags make it harder for retail investors to participate in big tech gains. When a hot IPO happens, it often rewards institutions more than individual investors, as seen with the initial surge in Figma before a pullback. Meanwhile private rounds continue to power OpenAI and SpaceX, attracting billions from VC and big tech backers.

The piece shows a clear tension between opportunity and access. Gen Z wants to copy the early moves of past tech mega favorites, but private rounds are locked behind accredited investor rules and expensive fees. That mix of promise and gatekeeping risks widening wealth gaps while fueling the sense that true wealth comes from insiders. Policy debates and market changes will shape whether retail investors gain a real foothold in the private market landscape.

In a broader sense, the story hints at a shift in what investing means. It is not just about owning shares in public companies anymore; it is about participating in new asset classes and later-stage private rounds. That shift demands stronger disclosure, better education, and smart safeguards to protect less-sophisticated investors while preserving the incentives that fuel innovation.

Highlights

The market will continue to evolve as policy and capital align.