Founder Survey Reveals Insights on Growth, Capital and the Path to Liquidity

In today’s market, private company founders face rising expectations. Beyond rapid growth, they must deliver consistent, predictable financial performance, clear differentiation and—often—an AI strategy and ecosystem position that investors view as credible, and frequently amid volatile macro conditions.

To better understand how founders are navigating fundraising, ownership and long‑term liquidity decisions, Morgan Stanley surveyed 150 private company founders at the Series A stage and beyond, with 67% of participants in Series C or later, in a new Morgan Stanley Founder Survey. 

The findings underscore several defining themes in the founder journey today:

• A broader mix of capital sources: Founders are increasingly looking beyond traditional venture capital to include strategic investments as well as alternative capital sources.
• Diverse pathways to liquidity: While an IPO remains the ultimate goal for most, founders are increasingly using tender offers and secondary transactions to provide employee liquidity while private.
• New approaches to going public: Founders are paying close attention to how IPOs are structured and distributed—particularly the growing role of retail participation and alternative entry points, such as direct listings, as well as innovative early lockup structures to meet the needs of employees and investors.

The survey also highlights a widening gap between urgency and support: Founders overwhelmingly say AI is critical to their company’s success, yet relatively few feel equipped to act—underscoring why AI positioning is increasingly central to fundraising and long-term competitiveness.

The Evolving Fundraising Environment for Founders

More than half of founders surveyed say they are pursuing a broader range of capital sources in the current macro environment, marked by a bifurcated fundraising landscape in which access to capital increasingly depends on whether companies are viewed as AI winners—and where geopolitical uncertainty and broader economic volatility cause fundraising windows to open and close.

For technology companies in particular, alternative capital sources increasingly include strategic investment from hyperscalers and large AI platforms, reflecting their balance‑sheet strength and commercial interest in supporting businesses that enhance their ecosystems.

Later-stage companies are also exploring debt and structured equity solutions as fundraising opportunities. Founders well beyond Series B, supported by strong balance sheets, may consider debt financing, while Series D and E companies with more predictable cash flows may turn to structured equity, which offers investors downside protection and defined return features while allowing founders to access capital with less immediate dilution than a traditional equity round.

As in the public markets, investor enthusiasm for private companies can be concentrated around businesses with clear differentiation in the AI ecosystem. Intense demand from traditional investors, including venture capital firms, is pushing valuations for these companies higher—prompting founders to favor long-term, strategic partners that can accelerate growth, serve on boards, or unlock access to contracts and partnerships.

Paths to Liquidity: Interim Solutions and Roads to Public Markets

While an IPO remains the primary goal—with 62% of founders considering or planning to go public—a meaningful share are also conducting secondary transactions, such as tender offers, while remaining private.

Tender offers have become the most widely used structured liquidity event for private companies, offering interim liquidity to employees, early investors and founders without issuing new shares. According to a Morgan Stanley at Work 2026 Liquidity Trends Survey, 47% of private companies say their next liquidity event is expected to be a tender offer, and 54% report having already completed one. As companies stay private longer, tender offers are increasingly used to support employee retention, manage concentrated ownership and relieve pressure to pursue a public listing before the business is ready.

Planning for IPOs and Beyond

At the same time, the IPO remains a defining milestone—and one that is evolving. Founders are thinking more deliberately about who participates, with growing emphasis on broader retail investor access. Involving retail investors can add incremental demand, help diversify the shareholder base and strengthen alignment with businesses that have built engaged communities around their products or platforms. Directed Share Programs—which allow companies to allocate shares to employees, customers and other key stakeholders—offer one way founders are extending IPO participation to a core base of retail investors.

As an alternative to an IPO, some founders may pursue a direct listing, which prioritizes liquidity and transparency by bringing existing shares directly to the public market—without dilution and with equal access for both retail and institutional investors.

Across these paths to liquidity, founders are focused on ensuring that not only senior leadership but also employees have access to resources and guidance as key strategic and financial decisions approach—helping teams stay engaged and focused on growth. Taken together, these trends underscore a shift toward liquidity as a planned, multi‑stage strategy, rather than a single defining event at the end of the founder journey.