IPO delays are reshaping private market liquidity: what that means for investors

2025 seemed poised to extend a shaky streak for Initial Public Offerings (IPOs). In recent years, a variety of factors have prompted private companies to take their time before going public. For investors new to the space, this guide to investing in private companies explains how private equity fits into the broader startup ecosystem — and why it continues to attract interest even amid delayed IPOs.

At first, it was so-called “cheap money”: low borrowing costs of the 2010s fueled the Silicon Valley tech boom, as free-flowing VC investments left little incentive to list. Then, when interest rates sharply rose in the early 2020s, it created an equal and opposite headwind. An uncertain global economic picture caused companies to wait for things to stabilize before dipping their toe into the water. The first half of 2025 in particular made private firms hesitant to debut, given tariff turbulence.

Since then, the backlog has started resolving itself, with IPOs up year-on-year in the third quarter. More companies globally took the plunge, recently including Medline, the biggest IPO of the year. Adding to this is the hype around the potential of a SpaceX listing next year, which would almost certainly be the world’s largest ever. OpenAI, too, has repeatedly delayed its long-rumored IPO, which could also be a potential record-breaker.

However, with the Federal Reserve’s interest rate trajectory far from certain, and corporate valuations in flux, the IPO pipeline remains uncertain. 

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What does this mean for private investors?

This has two important effects on the private equity markets. 

For shareholders looking to convert shares into cash, delayed IPOs can create a serious bottleneck to offloading holdings. This means they cannot re-invest that money in new ventures, and may also dampen their risk tolerance. Some investors are adapting by entering late-stage deals closer to an expected exit — a strategy explored here.

In turn, that means fewer opportunities for new investments. With less money generally available in the private equity ecosystem, fewer entrepreneurs can get off the ground, creating greater long-term stagnation.

While it is often good news for startups and companies eyeing their IPO to be able to delay the moment of going public, the same does not necessarily hold true for the investors themselves. Private equity investments may be attractive because they are not exposed to stock market turbulence. But that does not mean they are designed to be illiquid forever.

With a clearer tariff picture emerging, a growing number of companies will likely gain confidence to enter the public market, potentially freeing up a lot of private equity to be reinvested. This could create a knock-on effect, as growing confidence in private stocks fuels increased investor confidence in ability to liquidate resources. And accredited investors are already finding creative ways to unlock liquidity — even as IPO timelines stretch.

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What effects will there be in the long-term?

As more and more companies decide to put off IPOs, the market generally becomes less stable. Combined with the general economic and geopolitical backdrop, this means that investors should prep for the possibility that private equity will be less liquid in coming years. 

That could mean allocating less resources for private equity investments or exploring options to sell holdings through the private equity share market. This is less easy to do than on the open markets, mainly due to increased regulatory measures, but not impossible. This guide to pre-IPO platforms compares ways investors can access late-stage opportunities before a listing.

Another complicating factor is the growing concern that the rising artificial intelligence (AI) sector may be a bubble. Indeed, that is one of the key reasons for the delays around an OpenAI IPO. By delaying an IPO, companies may find initial valuation continues to rise in anticipation. However, waiting also raises the risk of a collapse in confidence.

It’s also true that many privately owned firms just can’t stay private forever. SpaceX and OpenAI are perhaps the highest profile examples of this. But there is a lot of money tied up elsewhere in private investments that will need to be made liquid in the future.

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How can Augment help you deal with delays?

Augment* is here to help, whether you’re looking to sell private investments or considering reinvesting money made after a successful IPO. The platform is designed to make private equity investments as easy to manage as possible.

By facilitating secondary private transactions, Augment opens up pathways for freeing up money in private investments, while potentially enabling investors to take over assets that may be appreciating in potential value ahead of a delayed IPO. These startup equity management best practices can help investors align liquidity needs with longer holding periods.

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*Augment Markets, Inc. is a technology company offering software and data services with securities-related services offered through its wholly-owned but separately managed subsidiary Augment Capital, LLC, Member of FINRA / SIPC. 

‍Important Disclosures: This material has been prepared for informational purposes only. None of the information provided represents an offer or the solicitation of an offer to buy or sell any security. The information provided does not constitute investment, legal, tax, or accounting advice. You should consult with qualified professionals before making any investment decisions. Investing in private securities involves substantial risk, including the potential loss of principal. 

Private securities are typically illiquid, have limited pricing transparency, and often require longer holding periods. These investments are available exclusively to qualified accredited investors and offer no guarantee of returns. Additionally, past performance of private securities does not indicate or predict future results.