What the IPO journeys of the public Magnificent 7 teach us about today’s private market
To better understand the modern private market landscape, it’s useful to revisit the early days of the Magnificent 7 (Mag 7) when they were still private companies. As the most consequential public companies of the current market cycle, their IPO histories offer valuable context for how access to capital, market expectations and investor dynamics have evolved and what that evolution might mean for today’s leading private companies.
Between Amazon’s IPO in 1997 and Meta’s public debut in 2012, we witnessed a shift from companies entering the public markets at valuations in the hundreds of millions of dollars (e.g., Apple, Microsoft, Amazon, NVIDIA) to Meta crossing the $100 billion mark. Fast forward to 2025, and several U.S.-based private companies including OpenAI, SpaceX, Anthropic and Databricks, now carry Forge PriceTM Valuations of $100 billion or more.1
As outlined in Late-Stage Private Companies: The New Growth Investing, today’s companies can remain private longer thanks to capital flowing in from non-traditional investors. Earlier this year, OpenAI closed the largest private funding round in history.2 Just a few years ago, raising $40 billion in a single round would have been unthinkable with only the involvement of VC and growth equity funds. Now, sovereign wealth funds, crossover investors and corporate venture capital programs are making this scale of private capital possible.
The scale of value creation that the Mag 7 achieved in the public market is striking. But there’s an emerging question: Is more value creation now occurring while companies are still private?
Consider OpenAI, which has discussed the potential for a $1 trillion IPO in the future.3 At its current Forge Price Valuation of $500 billion,4 that would translate to a 2x return. Which is significant by most standards, but modest compared to the company’s prior trajectory.
This suggests that, particularly for the most highly valued private companies, an IPO may be more symbolic than transformative. Unlike the Mag 7, these companies might generate the bulk of their value before ever entering the public market—if they do at all.
The evolution from the Magnificent 7's modest IPO valuations to today's $100+ billion private giants reveals a fundamental shift in value creation timing—where companies like OpenAI may capture their primary growth before ever going public. As unprecedented private capital from sovereign wealth funds enables longer runway periods, IPOs risk becoming more ceremonial than transformative. To track these evolving valuations and access exclusive private market insights, create your account today, or login to explore detailed pricing on tomorrow's potential public market leaders.
FAQs about the Mag 7’s journey to IPO
What exactly are the "Magnificent 7" companies mentioned in the article?
The Magnificent 7 refers to the seven most influential public companies in today's market: Apple, Microsoft, Amazon, NVIDIA, Google (Alphabet), Tesla, and Meta (formerly Facebook). These tech giants have become the most consequential companies of the current market cycle, which is why analyzing their IPO journeys provides valuable insights into market evolution.
How has the amount of money companies have raised before going public changed over time?
There's been a dramatic shift in pre-IPO funding capabilities. While the Magnificent 7 went public at valuations ranging from hundreds of millions to Meta's $100+ billion.
Why are companies choosing to stay private longer than they used to?
Companies can potentially get access to massive amounts of capital while remaining private, thanks to non-traditional investors like sovereign wealth funds, crossover investors, and corporate venture programs. This eliminates the previous necessity of going public primarily to raise funds, allowing companies to delay IPOs while still scaling operations and achieving high valuations.
What does it mean that IPOs might become "more ceremonial than transformative"?
Unlike the Magnificent 7, which created most of their value after going public, today's mega-private companies may capture their primary growth and value creation while still private.
Should investors be more focused on private companies than public ones now?
Value creation may increasingly happen in private markets before companies go public. However, private market investing requires different expertise, access, and risk tolerance than the public market. Investors should consider their investment goals, risk profile, and access to private market opportunities when making this decision. You can read our guide to investing in the private market to learn more.
