“The number of U.S. public companies has fallen by one-third since 1997, yet the total market capitalization of the U.S. public market is near its historical peak. A mix of factors has influenced this shift including The Fed’s monetary policies and a slowed economic climate. Lacking other attractive options, money still pours into public equity markets if only because that is the one place to earn a return.
The “smart money” is therefore making direct investment in private companies that would have been ideal IPO candidates. Those types of opportunities are not available to the average investor. However, through financial technology platforms such as EquityNet.com, there are direct investment opportunities in promising companies for the rest of us.”