A decade ago, you bought into the markets. Diversified across sectors. Caught some upside in tech. Played it smart. You did what every investor was told to do.
But lately, something feels off. Returns are slower. Public markets are choppier. And the big wins always seem to have happened before you got in.
That's not your fault. It's just how the market works now.
There are now 40% fewer public companies than in 2002. Startups aren't rushing to IPO anymore. They're staying private longer, growing faster, and funding that growth through private capital.
That means the real value creation is happening earlier, behind the scenes, before anyone rings the bell at the ASX or Nasdaq.
“Today you can get capital privately, at scale . . . you can also get liquidity in the private markets. So the reasons to go public, when you really reach an incredible scale, are getting pushed out.” – David Solomon, CEO at Goldman Sachs
When even Goldman Sachs – a firm whose revenue has long been tied to taking companies public – says the IPO no longer matters like it used to, it's worth paying attention.
We used to treat IPOs like liftoff: the moment a business breaks out.
But these days, IPOs are more like cash-outs. The real breakout happened years ago, when a small team raised a few million, built something new, and started bending their category in a new direction.
That's when the upside compounds... and when most investors are still on the sidelines.
The numbers tell the story:
Stripe raised nearly $10B across 24(!) funding rounds and hit a $95B valuation before even hinting at going public (it still hasn't).
Canva has raised $572 million across multiple funding rounds and reached a peak private valuation of $40B with only whispers of an IPO.
Uber delivered 20,000x returns for its earliest backers, years before listing.
By the time these companies hit public markets – if they ever do – most of the exponential upside is already baked in.
Airwallex's recent Series F, widely seen as a precursor to an eventual IPO, perfectly illustrates this timing problem. When Blackbird, a billion-dollar growth fund, admits they made their "most expensive mistake" by not investing earlier, it shows how even institutional money struggles with this shifted landscape.
We’ve seen how the game has shifted. The best companies are raising billions and reaching scale before they ever consider going public. The old path – build privately, grow publicly – no longer holds.
“These broad trends demonstrate the rapid tilt towards private capital markets. Of all private market strategies, venture capital has seen the largest annual growth since 2012.” – Ryan Burke, Global Private Leader at EY
This isn’t just a short-term trend. The structure of the market has changed.
And it means the growth that used to be available on public exchanges now happens earlier – and out of reach for most portfolios.
Fortunately, that’s where venture capital comes in.
Venture gives investors access to the value creation phase, not just the liquidity phase. It’s how you:
Venture capital is no longer a niche or a nice-to-have. It has become the most direct way to access the part of the economy that is being built, scaled, and monetised entirely in private markets.
And for those investing at the seed stage, the opportunity cuts even deeper. You’re getting in before the crowd, before the multiples, and before the narrative hardens.
Australia’s venture ecosystem has never looked stronger.
What was once considered a peripheral market is now maturing – with proven founders, real exits, and repeat backers driving the next wave of growth.
Key advantages include:
According to The State of Australian Startup Funding 2024, local startups raised approximately $4 billion across 414 deals, making it the third-highest year on record.
For investors, this creates a clear window of opportunity to access early-stage innovation with strong fundamentals, favourable structures, and a market that still rewards being early.
If your portfolio is still waiting for alpha in the public markets, you may be looking in the wrong place.
The best investments aren't on the horizon. They’re already in motion – backed early, scaling fast, and creating value long before a prospectus is ever filed.
This isn’t about whether to invest in venture capital. That question has been answered by the shift in the market.
The real question now is how much exposure you need to capture the upside — and how to manage that exposure wisely.
Because in today’s market, going earlier isn’t a strategy. It’s a requirement.
This article is for informational purposes only and does not constitute financial advice or an offer to invest. Investments in venture capital carry significant risks and are suitable only for sophisticated investors. For more information, please request our Information Memorandum. This offer is not available to retail investors.
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