Goldman Sachs is recognised as one of the leading investment banks serving as “book runners” for initial public offerings (IPOs), where banks earn substantial fees for each listing they support. However, during the Cisco AI Summit in Palo Alto, CEO David Solomon advised startups to rethink the pursuit of going public, as reported by the Financial Times.
According to Solomon, startups can achieve significant growth and access considerable funds in private markets without the complications associated with being a public entity.
Solomon remarked that being a public company is not an enjoyable experience and questioned the appeal of such a status.
Goldman Sachs is increasingly collaborating with prominent private firms, including facilitating Stripe’s $6.5 billion funding round in 2023. Stripe exemplifies a growing trend of large, private tech companies opting to stay private for extended periods.