E385: Why Public Markets Need SpaceX, OpenAI & Anthropic

What if the biggest opportunity in private markets isn’t finding the next startup—but owning the next public company years before it ever rings the bell? In this episode, I sit down with Matt Witheiler, Head of Late-Stage Growth at Wellington Management, to discuss how the line between public and private markets continues to blur. Matt explains why companies are staying private longer, why public investors are starved for growth, and how late-stage investing differs from both venture capital and public equities. We also explore IPO markets, valuation discipline, liquidity dynamics, and why the best companies often justify paying up for quality. Highlights:

• Why OpenAI, Anthropic, and SpaceX may reignite the IPO market
• The growing shortage of high-growth companies in public markets
• Why small-cap investing has fundamentally changed over the last decade
• How late-stage investors evaluate hype versus fundamentals
• Why founders optimize for partners, not the highest valuation
• The advantage Wellington brings as both a private and public market investor
• Why valuation discipline matters more than bargain hunting
• Matt’s biggest investing miss and what SpaceX taught him about exceptional founders

Guest Bio:

Matt Witheiler is the Head of Late-Stage Growth at Wellington Management, where he leads the firm’s private company investing activities across technology, healthcare, consumer, and financial services. Since joining Wellington in 2016, he has helped build one of the largest and most respected late-stage growth investing platforms, leveraging the firm’s deep public market expertise to identify future public company leaders. Prior to Wellington, Matt was a General Partner at Flybridge Capital Partners and earlier held operating roles in technology, including co-founding AnandTech.com. He has been named to the Forbes Midas List for six consecutive years and is widely recognized as one of the leading investors at the intersection of private and public markets.

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Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Pierce. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Why the Biggest IPOs in History Won’t Break Public Markets (2:22) The Passive Buying Wave Coming for SpaceX, OpenAI, and Anthropic (3:15) Why Public Investors Are Desperate for New Growth Stories (5:22) How Investors Separate Real AI Companies From AI Hype (7:59) Why Pension Funds Are Buying Private Assets From Public Allocations (9:20) The Hidden Reason Small-Cap Investing Stopped Working (13:13) Why the Best Founders Want to Stay Private Longer (13:44) How Wellington Wins Deals Against Sequoia and Andreessen (18:38) The Secret to Getting Into the Hottest Rounds Before Everyone Else (24:42) The Billion-Dollar Mistake Wellington Made on SpaceX