A legal change made it safer for some startups to avoid going public

A legal change made it safer for startups that rely on unique internal systems to stay private. This means companies that build their own software or processes can avoid the scrutiny and demands of public investors.

For years, people wondered why so many big startups stayed private. This paper finds it is because a legal change made it easier for them to protect their unique internal systems. This means companies can grow to massive valuations without ever facing public market demands.