Key insights
- A Morgan Stanley survey of US and Canadian startup founders reveals concerns about equity dilution, consistent financial performance, and a lack of AI implementation support. While revenue growth is a top priority, founders feel pressured and value financial partners who offer access to investors and talent. This suggests potential headwinds for private companies and a cautious outlook for future IPOs, indirectly impacting broader market sentiment.
NEW YORK - Morgan Stanley released survey results examining how founders of private companies manage growth, capital raising and liquidity planning, according to a press release statement.
The survey of 150 founders at Series A and later-stage private companies in the U.S. and Canada was conducted in the first quarter of 2026 in partnership with 8 Acre Perspective. Participating founders were required to hold at least 15% equity in their companies, which had 25 or more employees. Two-thirds of participants were at Series C or later funding stages.
Revenue growth ranked as the top business priority, followed by capital raising. The survey found 84% of founders reported feeling continual pressure to make their businesses succeed.
One-third of founders said they gave up too much equity in fundraising, pointing to concerns around valuation, dilution and investor fit. When asked about barriers to pursuing liquidity, founders cited delivering consistent financial performance as the primary obstacle ahead of market conditions.
The survey identified a gap in support for artificial intelligence implementation. While 95% of founders said AI is critical to success, only 23% reported feeling well supported in that area.
Founders indicated they value financial partners who provide access to investors, customers and talent. Most rely on small groups of co-founders, executives and board members for decision-making.
The research suggested founders view company outcomes and personal financial goals as connected. Most respondents said integrated planning that addresses both personal wealth and business equity is appealing.
Morgan Stanley (NYSE:MS) released the study in conjunction with its inaugural Founders Summit. The financial services giant, with a market capitalization of $300 billion, has delivered a 66% return over the past year while trading at a P/E ratio of 17.06. According to InvestingPro analysis, Morgan Stanley is a prominent player in the Capital Markets industry and has maintained dividend payments for 34 consecutive years, currently offering a 2.07% yield. The company’s revenue grew 14% in the last twelve months as of Q1 2026, reflecting strong business momentum.InvestingPro subscribers have access to over 10 additional exclusive tips about Morgan Stanley, plus comprehensive Pro Research Reports covering this and 1,400+ other US equities. These reports transform complex Wall Street data into clear, actionable intelligence through intuitive visuals and expert analysis. A companion survey of 150 senior leaders at private companies offering equity compensation plans provided additional context on liquidity planning trends. InvestingPro data indicates Morgan Stanley is currently trading near its Fair Value, with the stock positioned close to its 52-week high.
The findings are based on press release statements from Morgan Stanley.
In other recent news, Morgan Stanley reported record earnings for the first quarter of 2026, significantly surpassing analysts’ expectations. The firm announced earnings per share of $3.43, exceeding the forecasted $3.02 by 13.58%, and revenue reached $20.58 billion, outperforming the anticipated $19.7 billion. UBS reiterated a Buy rating on Morgan Stanley stock with a price target of $196.00, following the bank’s strong earnings report. Keefe, Bruyette & Woods raised its price target for Morgan Stanley to $218 from $210, citing continued revenue momentum across the company’s core businesses.
Meanwhile, Citizens maintained its Market Perform rating, noting improved customer engagement and key performance indicators in trading, investment banking, and Global Wealth Management. In another development, Morgan Stanley is launching cryptocurrency trading on its ETrade platform, offering lower fees than competitors like Coinbase and Robinhood Markets. The bank is charging clients 50 basis points on the dollar value of each crypto transaction. These recent developments reflect Morgan Stanley’s strategic moves and financial performance in the current market landscape.
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