In this NYSE Live interview, Edward Bess, Partner and Co-Chair of the Capital Markets Group at Willkie Farr & Gallagher, discusses the current IPO environment and the factors influencing companies as they evaluate whether to enter the public markets.

Bess explains that despite major stock indexes performing well, IPO activity has moderated after a stronger start to the year. He discusses how companies are weighing market conditions, investor sentiment, valuation expectations, and alternative sources of capital before deciding whether a public offering is the right path.

A significant portion of the conversation focuses on artificial intelligence companies and the funding landscape surrounding the sector. Bess notes that many AI-focused businesses have been able to access substantial private capital, allowing them to remain private for longer periods while continuing to scale their operations. He explains how this trend has changed the traditional relationship between growth-stage companies and the public markets.

The interview also examines investor expectations around AI valuations. Bess discusses the challenges associated with valuing emerging technology companies operating in a rapidly evolving sector, particularly when there are few comparable public businesses available for benchmarking purposes.

Another major topic is IPO preparation. Bess outlines the operational, financial, legal, and organizational steps companies typically need to complete before pursuing a public listing. He explains the importance of financial readiness, business planning, investor communications, governance structures, and assembling the resources required to operate successfully as a public company.

The discussion further explores how advancements in AI and other technologies may improve productivity and efficiency across industries. Bess shares his view that technological innovations can enable organizations to accomplish more while enhancing existing workflows and business processes.

Throughout the interview, Bess offers perspective on IPO trends, capital markets activity, AI company funding, valuation challenges, corporate preparedness, and the considerations companies face when evaluating public-market opportunities.

Disclaimer: Informational content only. NYSE does not endorse or recommend investments, strategies, companies, products, or services discussed.