The a16z Show When Giants Don’t Go Public: Inside the $5 Trillion Private Tech Market
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Feb 26, 2026 
David George, general partner at Andreessen Horowitz who leads its growth fund, explains why roughly $5 trillion of tech value now sits private. He discusses why top companies delay IPOs, how private liquidity and tender offers affect employee pay, the rise of SPVs and cap table opacity, and whether AI’s rapid scale will push more firms toward public markets.
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Private Tech Market Has Exploded
- Private tech now represents about $5 trillion of market cap, roughly 25% of the S&P 500 and 40% excluding MAG-7.
- That private sector grew 10x in 10 years and the 10 largest private companies make up 40% of that value.
Private Capital Reduces IPO Pressure
- Founders stay private because private capital is deeper and more liquid than before, reducing the need to tap public markets.
- Private tender offers and controlled share movements let founders minimize volatility while keeping access to capital.
Run Regular Tender Offers For Employee Liquidity
- Use private-market tender offers to give employees periodic liquidity without full IPO mechanics.
- Many companies offer annual tenders (e.g., SpaceX twice a year) allowing employees to sell a fraction of vested stock.