Private equity (PE) and venture capital (VC) are engines of US economic growth, innovation, and global competitiveness. Seven of the ten largest publicly traded US companies originated as start-ups backed by early venture or angel investment. Today, Apple, Microsoft, Nvidia, Alphabet (Google), Amazon, Meta, and Tesla represent over $15 trillion in market capitalization. PE and VC have reshaped industries and created millions of jobs. PE-backed firms employ over 12 million Americans, and VC-backed start-ups have grown their workforce eight times faster than the broader private sector since 1990. These investments do not merely line the pockets of Silicon Valley and Wall Street investors. They also sustain the Main Street economy.

However, structural challenges remain, including limited liquidity, regional investment concentration, widening wealth disparities, and barriers to broader investor participation. Emerging models, such as micro-VC, hybrid PE/VC funds, holding companies, and search funds, are beginning to close gaps. Policymakers are also working to expand access, but a more strategic response is required.

The need to fund America's techno-industrial renaissance is urgent. Now is the time to unleash private capital markets while democratizing access for everyday investors to participate. The Milken Institute Inclusive Capitalism program has convened a research team to conduct qualitative and quantitative analyses to support these efforts and ensure private capital can meet the moment.