The EU economy relies significantly on bank funding, prompting a policy focus on strengthening equity markets as an alternative. EU listed equity markets are smaller than US markets, with lower IPO activity and differences in firm capitalization and listed companies. This paper investigates the reasons for this EU-US listing gap by examining firm-level benefits and the development of pre-listing financing. It analyzes how listing impacts key performance indicators to understand broader economic implications. The study specifically focuses on innovative firms and the challenges faced by EU startups in their funding pipelines. Empirical analysis on euro area companies reveals that listing improves profitability, employment, innovation, and productivity. However, these benefits are accompanied by potential challenges like short-termism in investment strategies. A comparison with the US indicates that while the benefits and risks are similar, EU companies experience somewhat less positive outcomes from listing. The research aims to provide insights into fostering deeper and more effective equity markets in the EU. Understanding these drivers is crucial for enhancing the EU's Capital Markets Union and Savings and Investment Union initiatives.