New research points to a major shift in the way companies come to market – and how much money investors can potentially make by getting in on the ground floor.

Traditionally, IPOs helped young, cash-strapped businesses raise funds to grow…

going public was THE moment ordinary investors could share in its success.

For instance, Apple and Amazon both IPO’d early in their life cycles – at 4.5 and 3 years, respectively.

But now, with the expansion of private capital from venture funds and private equity, companies no longer must rely on public funding to grow, according to researchers at the University of Notre Dame.

The result?

Over the past 20 years, the average age of a company when it goes public has grown…

from 4 years in the early 2000s…

to 10 years today.

The researchers tracked nearly 1,000 IPOs conducted over the past two decades. They concluded that the exponential growth traditionally expected after an IPO now happens BEFORE the public sale—

Leaving little left for ordinary investors to profit.

In other words, IPOs now reflect insiders’ exit timing rather than public investors’ growth opportunity.

The timing of that shift is hard to ignore.

SpaceX is expected to make history later this month as the largest IPO ever – targeting roughly $75 billion at a whopping $1.75 trillion valuation.

Founded in 2002, SpaceX will enter public markets after more than 20 years of private development.

WorthNet partner adviser Chuck Carlson of Horizon Investment Services has spent more than four decades analyzing stocks and IPO cycles. His work has appeared in outlets like The Wall Street Journal, Barron’s, and Kiplinger, and he contributes to one of the longest-running independent market research letters in the country.

“The impetus for buying IPOs was always to capture the biggest part of the growth curve,” Carlson says. “One could argue that investors today are capturing a smaller portion of that curve as companies wait longer to go public.”

That’s a meaningful shift.

Because if more of the growth is happening before a company ever reaches public markets…

Then the timing of when investors get in becomes just as important as the company itself.

Carlson says that’s one reason his team typically steers clear of buying IPOs right out of the gate.

“There is usually a massive ‘hype premium’ surrounding new IPOs that early investors pay,” he explains.

He also points out that many individual investors aren’t actually getting access at the IPO price.

“Most individual investors end up buying the IPO shares after they have had their pop in price.”

In some cases, that dynamic can lead to a very different experience than investors might expect going in.

Which is why Carlson says patience can play a role.

“History shows that showing a little patience with IPOs can go a long way in getting into newly public companies at much better prices – perhaps 6 to 18 months after the company goes public and the hype (and stock price) have subsided.”

And it all comes back to one simple question he believes investors should be asking:

Why now?

“Does the company need money? Are insiders looking for an exit? Are market conditions conducive for going public?”

Answers to those questions offer important context for how an IPO is being positioned – and how it might fit within a broader portfolio.

If you’d like expert help finding the answers, take our short, 90-second questionnaire to connect with WorthNet’s small, vetted network of independent advisers – including firms like Horizon – by clicking below.

To be fully transparent, WorthNet has referral arrangements with advisers in our network and may receive compensation if you choose to engage one of them. This creates a financial incentive for us to recommend those advisers and, therefore, presents a conflict of interest.

Although WorthNet is a registered investment adviser, we act solely as a promoter. We do not provide personalized investment advice, manage assets, or recommend specific securities. Instead, we connect our readers with partner advisers we believe may be a good fit.

Charles B. Carlson, CFA®

CEO & Portfolio Manager of Horizon Investment Services

Investment Visionary, Seasoned Asset Allocator

Charles B. Carlson is a veteran investment adviser with over 25 years of experience in retirement planning, asset allocation, and portfolio management. He is CEO of Horizon Investment Services (CRD #110642), a proud member of the WorthNet partner adviser network.

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Last Revised: June 2, 2026