Private Outperformed Public in 2024
- The Caplight Top 20 Index returned +72% in 2024, outperforming the Nasdaq-100 (+26%) and Renaissance IPO ETF (+17%).
- Strong performance highlights investor confidence in late-stage, venture-backed private companies despite market volatility.
- Top performers include Revolut (+281%), SpaceX (+111%), and Stripe (+70%), driven by fintech and AI sectors.
- Private equities demonstrate resilience and growth, offering opportunities as the IPO market shows early signs of recovery.
26% Increase in Trading Volume Year-over-Year
Data & AI Continues to be the Hottest Sector in the Market
- Data & AI companies raised over $100B in 2024, with top fundraisers like xAI ($12B) and Databricks ($10B) leading the charge.
- Emerging companies like xAI and Perplexity saw outsized valuation growth, reflecting strong investor interest beyond established leaders.
- Valuation increases outperformed public market competitors (median valuation growth increase = +110%).
Private Data & AI Multiples Remain Attractive vs. Public Peers
Triple digit revenue growth outpaced valuation gain
Themes we’re Tracking in 2025
After Two Years of IPO Drought, VC-backed Companies Prepare for a 2025 Window
- The public market’s warm welcome of 2024’s IPO cohort is encouraging well-positioned private companies to follow suit.
- In Q4, we saw a significant increase in IPO preparation activity, including CFO hires, investment bank engagements, cap table cleanups, and prospectus filings.
DOGE: Don’t Overlook Gains of Elon?
Mutual Funds Remain Bullish on their Private Holdings
- Mutual Funds remained bullish on their existing growth investments.
- Across all companies with ’40 Act Fund investors and an estimated Caplight MarketPrice, ’40 Act Funds tend to mark much higher than Caplight MarketPrice. This could reflect their optimism that many of these companies will grow into and surpass the lofty valuations from the past few years.
GPs Turn to Continuation Vehicles to Retain Top Assets and Deliver LP Liquidity
Disclaimer: For investment professional use only. This is for informational purposes only and does not constitute an offer to buy or sell securities. An offer or a solicitation can be made only through the delivery of final offering document(s) and purchase agreement(s), and will be subject to the terms and conditions and risks delivered in such documents. All investments carry risk, and by investing in securities of private companies you may lose some or all of your investment. Past performance is not indicative of future returns. Consult with your financial advisor or an investment professional before making any investment decisions. Any securities offered are offered through Caplight Markets LLC, member FINRA/SIPC.
The information herein is provided as-is , without warranties of any kind. Caplight disclaims all warranties, express or implied, of merchantability, fitness for a particular purpose, title, and noninfringement.
