For decades, the advice around building wealth was straightforward: invest in the stock market. Buy shares in established companies, hold them through market swings, and let time do the work. It was a simple, accessible strategy that built retirements and financed countless dreams. But what if the landscape has quietly shifted? What if much of the strongest growth and innovation is no longer happening on public exchanges, and instead is shifting toward alternative investments designed to outpace inflation?
A less visible trend has been unfolding for years:
The number of publicly traded companies in the U.S. has plummeted by nearly 50% since 1996.
That’s not a small change. In just over two decades, half of the visible investment opportunities have vanished. This isn’t a short-term fluctuation. It reflects a bigger change in how companies grow, who benefits from that growth, and where long-term private market growth statistics point as we move toward 2026.
The Shrinking Public Market: Where Did All the Companies Go?
In the early tech boom, companies like Amazon went public much earlier in their growth cycles. This allowed everyday investors, from savvy professionals to casual savers, to buy shares and ride the exhilarating wave of innovation and expansion. Everyday investors had a real chance to participate in early-stage growth, narrowing the gap between investing in Main Street vs Wall Street.
Today, that dynamic has changed. Companies like SpaceX, Stripe, or Shein, which represent some of the most disruptive and rapidly expanding forces in the global economy, choose to remain private for years, often for over a decade. Why? The reason is simple: private capital is far more available than it used to be, offering these companies the resources they need to scale without the intense scrutiny, quarterly earnings pressure, and regulatory burdens that come with being a public company.
For individual investors, the implication is significant. It means that all the "early-stage wealth creation" - the explosive growth phases that generate the highest returns - is happening behind closed doors instead of in the public markets. A large share of those gains now goes to institutional investors, venture capitalists, and accredited investors, largely due to long-standing investor requirements that have limited access for everyday, "retail" investors. By the time many of these companies finally do go public, much of their hyper-growth potential has already been realized (in the hands of the ultra-wealthy), leaving less upside for public investors gain access.
By the Numbers: The Performance Gap You Can't Ignore
This shift shows up clearly in performance data. For years, the S&P 500 has been considered the "gold standard" for equity investing, delivering an annual average return of 7%–9% over the long term, especially when compared to the S&P 500 average annual return vs private equity. It’s a solid benchmark, offering steady long-term growth, often enough to keep pace with inflation and slowly build a nest egg.
But public markets aren’t the only option. What if there were an entire class of alternative investments consistently delivering 15%–25% average returns? Why such a significant difference? The difference comes down to how private markets operate. Unlike their public counterparts, private investments are not subject to the daily emotional whims of the stock market. And because they aren’t traded minute-by-minute, they tend to experience less day-to-day volatility.
Instead, private markets focus on long-term value creation, operational improvements, and direct lending relationships that can complement a diversified portfolio alongside traditional fixed-income alternatives.
-
Private Equity investors often take significant stakes in companies, working closely with management to improve operations, expand markets, and increase long-term value over several years.
-
Private Credit, on the other hand, involves direct lending to small businesses, mid-market companies, and even real estate projects that may find traditional bank loans restrictive or unavailable, often creating more predictable passive income streams. In exchange for providing this capital, private lenders receive higher interest rates, often with additional fees and stronger collateral. This direct relationship leads to more stable, higher yields that are less correlated with public market fluctuations.
This focus on fundamental value, combined with the illiquidity premium (which means investors get paid more for the "lock up" of their funds), helps explain why these institutional-grade assets have historically delivered the higher returns that large funds have enjoyed for decades.
The Wall is Lowering: How Worthy Expands Access to Private Markets
For too long, the barrier to entry for these higher-performing investments has been high. Traditionally, to participate in private equity or private credit, you needed to be an "Accredited Investor" - someone with over $1 million in net worth (excluding your primary residence) or an annual income exceeding $200,000. This effectively locked out the vast majority of everyday investors, but platforms like Worthy now offer a practical way to bypass traditional accredited investor requirements.
That barrier has started to come down, and Worthy is at the forefront of the community capital movement as it pushes to open up higher-yielding investments for all. Worthy has the ability to connect individual investors with the very same types of private credit opportunities that institutional funds pursue, but at a more welcoming entry point.
Worthy's mission is straightforward, but meaningful: to empower everyday Americans to participate in compelling, wealth-generating, alternative investments that provide both financial and social impact.
Impact Beyond the Wallet: Investing in Your Community
One meaningful difference between public and private market investing through a model like Worthy is a stronger sense of connection. When you buy shares in a faceless, multinational corporation on the stock market, your connection to its impact is often distant and abstract. You rarely see the direct benefits of your investment in your local community.
Worthy Bonds fundamentally change this equation. Each investment you make isn't just a number in a spreadsheet, it’s capital flowing directly to communities and real estate projects that contribute to the vitality of "Main Street."
You're not just earning a return, you’re becoming a community wealth builder.
Closing the Gap Between Public and Private Investing
The world of investing is evolving. The traditional advice on how to navigate financial markets no longer guarantees access to the most dynamic growth or the highest returns. The gap between public and private market performance suggests that traditional approaches may deserve a second look.
You can now put your money in investments that align with your values while still earning an attractive return. By intelligently diversifying a portion of your portfolio into the private sector through accessible platforms like Worthy, you are not only positioning yourself to capture the higher, more stable returns that institutions have long enjoyed but also actively participating in building a more vibrant, community-focused economy.
For many investors seeking to invest in private markets without institutional barriers, it may be worth looking beyond traditional public markets to discover where true growth is happening. It's time to bridge the gap and invest in the world you want to live in, one Worthy Bond at a time.
Article Highlights
-
Why are there fewer publicly traded companies today than in the 1900s?
-
This shift has occurred because private capital is now more readily available, allowing companies to scale significantly without going public. By staying private, companies avoid the intense regulatory burdens, quarterly earnings pressure, and public scrutiny that come with being listed on a stock exchange.
-
-
Is the number of publicly traded companies in the U.S. decreasing?
-
Yes, the number of publicly traded companies in the U.S. has plummeted by nearly 50% since 1996. This significant decline indicates a shift in the financial landscape where more innovation and growth are occurring in private markets rather than on public stock exchanges.
-
-
What is the average return of private equity vs. the S&P 500?
-
While the S&P 500 historically delivers an annual average return of 7%–9%, certain alternative private market investments have delivered 15%–25% average returns. This performance gap is often attributed to the "illiquidity premium", where investors earn higher yields in exchange for locking up funds, and a focus on long-term operational improvements rather than daily market volatility.
-
-
How can I invest in private markets if I am not an accredited investor?
-
Traditionally, private market access was limited to "Accredited Investors" with a $1 million net worth or high annual income. However, platforms like Worthy are lowering these barriers through the community capital movement. Worthy allows everyday investors to participate in private credit opportunities and community-focused real estate projects without meeting traditional institutional wealth requirements.
-
-
What are the benefits of private credit for passive income?
- Private credit offers more predictable passive income streams by providing direct loans to small businesses and real estate projects. Because these loans often have higher interest rates and stronger collateral than traditional bank loans, they can provide stable, higher yields that are less correlated with the fluctuations of the public stock market.
