EquityZen Founder Discusses Private Market Divide
As startups stay private longer, the market for secondary shares has heated up. EquityZen's Phil Haslett discusses current market dynamics, particularly the divergence between AI companies and older software firms.
The market for shares in private, venture-backed companies is experiencing a significant divide, with AI and hard-tech firms commanding premiums while many older software companies trade at discounts. EquityZen, a marketplace for private company shares, has observed this trend closely.
Phil Haslett, co-founder and chief strategy officer at EquityZen, noted that while the second quarter saw increased IPO activity, removing outliers like SpaceX reveals challenges for typical late-stage tech companies. Despite a broader recovery in tech stocks, post-IPO performance for many companies has been inconsistent.
Haslett highlighted that AI infrastructure, space tech, and robotics are currently favored sectors. These capital-intensive industries, requiring longer development cycles, attract investor interest due to perceived generational growth opportunities. In contrast, traditional SaaS companies that secured high valuations in 2021 are now facing discounts, especially if they haven't adapted to an AI-first strategy.
EquityZen reported that the average secondary transaction occurred at a 38% discount to the last funding round, a stark contrast to AI transactions trading at premiums. Haslett attributes this to two distinct cohorts of private companies: newer, AI-native startups with clearer trajectories and older companies that have had to pivot, potentially slowing growth. While capital-intensive companies require longer timelines and more funding, they benefit from expanding credit and asset-based financing options.
Morgan Stanley acquired EquityZen in January 2026. The company continues to operate under Morgan Stanley, facilitating secondary market transactions for private company shares.