A decade ago, if you wanted to invest in world-changing private companies, you had one option:
Wait. Specifically, you had to wait for a private company to go public in an IPO. And by the time you could finally buy shares in the stock market, the biggest gains were already gone.
But meanwhile, slowly but surely, a new market was emerging where you could buy private shares. A decade ago, this market was worth close to zero. But now, according to industry research released last week, it’s worth $100 billion.
$100 billion is a surprising number. It’s huge. It’s the same size as the market for IPOs.
If you’re looking to build wealth, you need to know about this. Now is the time.
The Big Shift
As long-time Crowdability readers know, today’s highest-potential companies aren’t public. Instead, they’re fast-growing private startups focused on emerging sectors including space, AI, and autonomous weapons.
The private market is where the growth is, and where nearly all the profits are being earned.
Historically, access to the private markets was limited to venture capitalists or wealthy angel investors. Ordinary investors had no way to get exposure.
But now, according to a Special Report from Pitchbook, a research company owned by Morningstar, the world has changed…
Introducing “Venture Secondaries”
The reason for this change is simple: venture secondaries.
Venture secondaries are private startup shares you buy from someone who already owns them. The seller might be an early employee of the startup who received shares as part of her compensation package, an early angel investor in the startup, or a venture capital fund.
For the seller, this is a chance to take some money off the table. For you, it’s a chance to buy into proven, world-changing companies that are poised to go public or get acquired — companies like SpaceX, OpenAI, Anduril, Revolut, Kalshi, and hundreds of others.
As mentioned earlier, this market barely existed a decade ago.
But recently, it’s exploded…
As Big as IPOs
To those of us in the industry, one of the charts in the Pitchbook report was mind-blowing.
The chart compares the size of three markets: venture secondaries, IPOs, and M&A. These markets are the three main ways that startup investors make their profits.
Here’s the chart:
As you can see, the Secondary market — a market that was effectively worth zero a decade ago — has grown to be about the same size as the market for IPOs.
In other words, the market for buying and selling shares of private startups has become as important as the IPO or M&A markets.
This isn’t a fad or incremental growth. This is a structural shift that’s here to stay.
Three Reasons This Market Is Exploding
There are three main reasons this market has become so important and entrenched:
1. Companies Are Staying Private Longer
The average time to IPO has increased dramatically over the past few decades, from four or five years, to twelve to sixteen years. That means more of a company’s value is being created while it’s still private — and more of its profits are being earned by private investors.
2. Early Investors Want Liquidity
Employees and early backers don’t always want to wait for the payout from an IPO or acquisition. Secondary markets provide a release valve so they can turn their shares into cash.
3. Institutional Capital Is Flooding In
Private equity firms, hedge funds, family offices — they’ve all recognized that venture secondaries offer access to the most exciting companies, and the biggest potential returns.
When institutional capital pours in, markets scale. And that’s exactly what’s happened.
Why This Matters for Ordinary Investors
If you’re only investing in the stock market, you’re missing the bigger picture.
The most explosive companies — SpaceX, Anduril, and hundreds of others — are being built privately.
Historically, Main Street investors never had a chance to invest in companies like these. But now there are several ways to get exposure, including secondary purchases, pooled funds that contain one particular startup’s shares, and publicly traded funds that invest in private startups.
The menu of options is expanding. But so too is the complexity...
The Catch
This isn’t the type of market where you click a “Buy” button and you’re all set.
Secondary pricing can vary widely. Access can be tricky. And information isn’t transparent.
A layer of quality control is critical. You need to know what you’re doing.
That’s why simply knowing the market exists isn’t enough.
At least at first, you’ll need guidance.
We Can Help
The secondary market has become a core pillar of venture capital — and a rich source of market-beating returns.
And for the first time, individual investors like you have real pathways into this world.
The question isn’t whether the secondary market will matter. It already does. The question is whether you’ll participate intelligently.
To learn more about how we can help, check out Private Market Profits. Or give our Customer Care team a call at 1-844-311-3191.
Happy Investing,
Best Regards,
Founder
Crowdability.com
