The median time for a tech company to go public is 11.5 years, according to PitchBook data cited by saastr.com. However, the initial public offering (IPO) is not the final liquidity event for most investors. Venture capitalists (VCs) and founders typically continue to hold shares for years after the IPO, with many only able to sell about 4% of their holdings annually.
Saastr.com highlights that the lead investor in a successful IPO often remains invested for 10 to 13 years from the first check. For example, Snowflake’s lead VC, Sutter Hill, held 20.3% of the company at its 2020 IPO, worth $12.6 billion on under $200 million invested. Even after the IPO, Sutter Hill’s stake only gradually decreased from 11.4% to 1.3% over the following year, demonstrating the extended timeline for liquidity.
This extended holding period contrasts with the typical 10-year venture fund lifespan, meaning many VCs continue managing these investments beyond their fund terms. In the first half of 2025, only 4% of US venture-backed exits were IPOs, with acquisitions and buyouts dominating. This dynamic underscores the challenges in achieving liquidity through public markets and the importance of long-term capital commitment in tech investing.
Meghan Reynolds of Altimeter noted that at SpaceX, about 40% of private investors’ shares are distributable, but limited partners have received far less, reflecting the slow pace of liquidity. The data from saastr.com shows that even after an IPO, the journey to full liquidity for investors and founders can take several more years.