The public markets have been shrinking And you just give us a sense of how much We have seen the public world contract Well it's dramatic here Lisa and Obviously I'm right here in the heart of It in San Francisco where companies stay Private for longer and what that has Meant is that essentially over the last Two decades about half of the public Companies have gone away they're not Publicly traded anymore and that has Been a boon obviously here company Staying private for longer but it has Real-life implications for lots of Investors all right so can we get a Sense of why so many companies are Deciding against going public why They're sticking with private financing Well mainly because the money is Absolutely available you know here in Silicon Valley we talk a lot about Venture capital obviously but private Equity we're talking about four plus Trillion dollars of assets under Management when you think about private Equity writ large including venture Capital so the money's there the likes Of uber and lyft and all the companies You know all these unicorns that sort of Roam around this part of the country They can get money they don't yet to go Public Jason you make a really Interesting picture of San Francisco With all these unicorns just wandering
Around looking for financing but I'm Wondering everywhere you can ride them Ride unicorns I'll look for that picture Of you riding unicorns I am curious Though do we ever see this trend Changing and companies deciding to go Back to IPO inge and going to public Markets well certainly those of us who Were around for the dot-com bust back in 2000 remember that the money did dry up A little bit and you know things can Change for sure but it does feel like And you cover this on your show all the Time you and I talk about it a lot on The desk the money has shifted the Market has shifted it feels more secular Than cyclical as they say private Markets certainly here to say the Question is can investors get the type Of liquidity that they need to really Trade in and out of these names in the Way that they can on the public market All right Jason have so much fun at Riding those unicorns it does bring us To the companies that do decide to go Public and shonali there are Company's still hoping to rely on IPOs Next year for financing what are some of Those names so some of the biggest Companies that we're looking forward to Is Airbnb which has been pretty vocal About their hopes of going public and They do tend to turn a profit so we'll Watch for how they do it they which is
Rare yeah some of them carry on yes it Is it is not definitely something that's Unanimous among unicorn world so Airbnb Is one of the hopefuls for 2020 and then We also have door – which is not Profitable Softbank backed it's going to be a Really interesting ride there's a lot of Skepticism baked into the door – story Also given how much money there is in Private markets why are they going Public Well people still like to have liquidity For their employees as well as well as Their existing employees like the Founders for example right and the hope Here is exactly the founders especially But also the other employees and there Is a hope that going public will help You grow faster give you a more Diversified base of shareholders give You a longer lifeline remember the tough Luck at the top for big tech companies Look at the fangs it still gives you a Rite of passage into kind of being a Grown up company and so those with the Hope of longevity would still like to Use the path all right so there are Gonna be some IPO is meanwhile its turn To luxury real estate which has been a Rough spot this year around the world Sort of I mean slightly rough some People are growing a little bit more Optimistic though next year Patrick can
You give us sense first of all when I Came and I said to you so how bad is it Ben and you're like oh I'm big of the Declines been in some of these property Markets well you know it goes market by Market you definitely do have cities Like New York you have Manhattan where There has been large influx of new Supply and so there's too many high High-end apartments on the market so Sellers haven't been able to get the Prices that they have wanted you've had Taxes and other government efforts in Places like London or Vancouver to sort Of cool off markets to make it harder or More expensive for foreign buyers and All of that has had a toll this year all Right a toll although you seem like You're playing the smallest violin I Could ever see what about next year what Are we expecting I think the pendulum is Going to swing back a little bit Least again in certain places Particularly where there's been less new Inventory coming on to the market places Where maybe you know you could look at London where the political situation Looks a little more clear maybe people Have more confidence in investing in in Real estate there if cities like Miami Where you know the the u.s. tax policy Is kind of pushing wealthy homebuyers to Take up residence in in Florida where Where they don't have to pay income tax
And so that could be a boon again that's A that's a market where the Supply-demand sort of balance is a Little bit better for sellers
