A Caltech Library Service

Private or Public Equity? The Evolving Entrepreneurial Finance Landscape

Ewens, Michael and Farre-Mensa, Joan (2022) Private or Public Equity? The Evolving Entrepreneurial Finance Landscape. Annual Review of Financial Economics, 14 . pp. 271-293. ISSN 1941-1367. doi:10.1146/annurev-financial-101821-121115.

Full text is not posted in this repository. Consult Related URLs below.

Use this Persistent URL to link to this item:


The US entrepreneurial finance market has changed dramatically over the last two decades. Entrepreneurs who raise their first round of venture capital retain 30% more equity in their firm and are more likely to control their board of directors. Late-stage start-ups are raising larger amounts of capital in the private markets from a growing pool of traditional and new investors. These private market changes have coincided with a sharp decline in the number of firms going public—and when firms do go public, they are older and have raised more private capital. To understand these facts, we provide a systematic description of the differences between private and public firms. Next, we review several regulatory, technological, and competitive changes affecting both start-ups and investors that help explain how the trade-offs between going public and staying private have changed. We conclude by listing several open research questions.

Item Type:Article
Related URLs:
URLURL TypeDescription Paper
Farre-Mensa, Joan0000-0003-0401-9107
Additional Information:We thank Minmo Gahng, Oleg Gredil, and Jay Ritter for generously sharing data. Kexin Feng provided excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Record Number:CaltechAUTHORS:20221115-640640900.4
Persistent URL:
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:117881
Deposited By: Research Services Depository
Deposited On:29 Nov 2022 17:53
Last Modified:29 Nov 2022 17:53

Repository Staff Only: item control page