US Public Companies Drop by Nearly Half Since Late 1990s as Firms Delay IPOs to Avoid Market Pressures
Summary
US public companies plummet from over 8,000 in the late 1990s to just 4,317 in 2023 as firms increasingly delay IPOs to escape quarterly reporting pressures and maintain operational control, creating transparency challenges for employee shareholders in private markets.
Key Points
- The number of publicly listed companies in the United States drops dramatically from over 8,000 in the late 1990s to approximately 4,317 as of 2023, while companies wait longer before going public with median age increasing from 6.9 to 10.7 years
- Companies increasingly choose to remain private to avoid quarterly reporting requirements, retain more control over operations, and focus on long-term goals rather than short-term market pressures and volatility
- Private companies face a critical challenge in providing transparency around share ownership and valuation structures, requiring better education programs for employees and proper cap table management to ensure effective wealth building and retention strategies