Goldman is the lead underwriter on Twitter's looming IPO. "We have a big franchise in bringing companies to market, and we have invested a lot in our tech franchise specifically," Blankfein said Tuesday on CNBC's "Closing Bell."
"One of the things that's driving the IPO opportunity now is in the last few years the source of private capital has been so great that these companies have been able to get initial funding away from the public markets to get themselves into shape for going public," he said.
"Some of these companies will make it on their own, some will make it on their own for a short time and then be acquired ... and their technologies will be additive to other existing companies," Blankfein said.
He noted that although he believes the IPO market is "alive and well" investors should not to be overly optimistic. He added that there is "no great advantage to being overly pessimistic and not realizing the blessings that we have in the market today."
"We have high equity prices at the moment now, we have an economy that is growing. People would like for it to be growing at a faster rate, but there is no doubt that it's growing, " he said. "The capital markets are in great shape. ... I think we have a good formula for growth going forward."
—By CNBC's Karma Allen