EquityZen Sees 38% Private-Share Discounts as AI Startups Command Premiums
Updated
Updated · Crunchbase News · Aug 24
EquityZen Sees 38% Private-Share Discounts as AI Startups Command Premiums
1 articles · Updated · Crunchbase News · Aug 24
Summary
A 38% average discount to the last funding round now defines many private-share trades, while AI-focused companies often clear at premiums, EquityZen Chief Strategy Officer Phil Haslett said.
Haslett said the split reflects two startup vintages: many 2021-era companies raised at peak valuations and are still adapting, while AI-first companies launched from 2023 onward offer cleaner growth stories and faster repricing potential.
Late-stage IPO conditions are better than three or six months ago after SpaceX, but post-listing performance outside the biggest names has been mixed, leaving some companies more willing to go public than investors are to reward them.
Hard-tech sectors including AI infrastructure, robotics and space are drawing stronger demand, though investors are discounting factory buildouts, regulatory delays and the growing use of credit financing that can subordinate equity holders.
Secondary liquidity is also becoming more common earlier in a startup’s life, as companies use tender offers to retain talent and large institutions such as Morgan Stanley expand in a market Haslett said gives the truest current price.
With secondary markets exposing inflated 2021 valuations, are older startups hiding their true worth while AI-native companies steal the premium spotlight?
As AI startups use tender offers to hoard top talent, will secondary liquidity become the ultimate weapon that delays traditional tech IPOs forever?
If secondary pricing is the only true signal of value, is the traditional VC fundraising valuation now just an illusion for private startups?