How Retail Investors Will Reshape Public Markets In 2025

By Rebecca Kacaba

The rise of retail investing is here — and it’s transforming the way companies grow, operate, and engage with their communities and customers. In 2025, retail investors will reshape IPO strategies, corporate governance and the dynamics of shareholder engagement. Companies and institutions that embrace this shift will thrive, while those that ignore it risk irrelevance.

A confluence of factors is driving this shift. The rise of retail investing platforms, fractional shares and the democratization of financial information through social media and online communities has empowered everyday investors. Retail investors now account for about 20% of all U.S. equity trading volume.

This trend has been building for years, but the events of 2024 brought the power of retail investors into sharp focus. In April, Disney successfully fended off an attempted coup from activist investor Nelson Peltz, who sought to oust longtime CEO Bob Iger.

The company spent more than $40 million marketing to its investor base leading up to the vote — and it paid off in spades. Sixty-three percent of Disney’s shareholders participated — and Iger took home 94% of the overall vote.

Not long before that, Reddit’s long-awaited IPO made history, thanks to an ingenious approach: The company allocated about 8% of its IPO shares for its superusers, giving them the opportunity to buy at the listing price of $34 — well below the $47 opening price. This unprecedented move rewarded loyalty, empowered retail participants and set a new standard for retail’s role in public offerings.

These examples underscore the momentum behind retail investors, and they’re just the beginning.

Here’s how 2025 will redefine the relationship between retail investors, IPOs and public markets.

IPOs will make a point to prioritize retail

In 2025, publicly traded companies will increasingly turn to private capital raises as a strategic tool to complement their market activity. By working with platforms like DealMaker 1, public companies can raise funds on their own terms while strengthening ties with their communities.

Take Monogram Technologies, which raised $13 million last year using technology from DealMaker. This approach not only provided a significant infusion of capital but also allowed Monogram to reward its supporters with exclusive pricing and perks. Such initiatives foster meaningful 1:1 brand relationships, transforming customers into loyal advocates and investors.

For public companies, these raises aren’t just financial tools — they’re a way to engage their audience while maintaining control over their capital-raising process.

Retail investors will shape corporate governance

Retail investors are not just a source of capital — they’re also reshaping boardroom dynamics. What we saw happen with Disney in 2024 was no anomaly — it was proof of how powerful an engaged retail base can be.

In 2025, retail investors will play an even greater role. Proxy battles, shareholder proposals and activist campaigns will increasingly hinge on retail sentiment.

Last year, a record number of activist investors took swings at some of the world’s biggest brands — and Disney’s innovative battle strategy showed companies around the world that retail investors can help them win. In 2025, companies will look for ways to communicate directly with retail shareholders, leveraging technology to provide real-time updates, voting tools and educational resources.

New regulations will boost retail momentum

The Securities and Exchange Commission is already exploring rules to improve access and reduce disparities between retail and institutional investors. In 2025, we expect:

• An expansion to the accredited investor definition, which will increase access to opportunities for investors who may be sophisticated but not wealthy;
• An increase to the annual maximum funding limits allowable under Regulation A+ from $75 million to $150 million;
• Lower corporate tax rates, which may enhance corporate earnings (generally favorable for the stock market); and
• An increase in both M&A and IPO activity, creating more opportunities for retail investors to participate in.

Meanwhile, consumer sentiment is on the upswing when it comes to the economy. When consumers feel confident, they invest more into the stock market — meaning we’re at an inflection point in which the convergence of sentiment and opportunity will spark a fresh wave of activity.

Retail investors as the new power players

The rise of retail represents one of the most profound shifts in public markets in decades. In 2025, companies that embrace retail shareholders as strategic stakeholders will unlock significant value. For forward-thinking companies, this isn’t just an opportunity, it’s the future.

Rebecca Kacaba is the CEO and co-founder of DealMaker, a global leader in online capital-raising. A trailblazer at the intersection of finance and technology, she turned her expertise as a top securities lawyer into a bold vision to transform the way founders and operators raise capital, fuel growth and engage with their fans. Under her leadership, DealMaker has powered more than $2 billion in digital capital raised, earning recognition as one of Deloitte’s Technology Fast 500 winners and one of Fast Company’s best workplaces for innovators.

Illustration: Dom Guzman