IPO is still the ultimate destination for start-ups

Going Public

Going public used to be the dream of any hard-charging technology entrepreneur. Yet the latest crop of hot companies out of Silicon Valley — Uber, Airbnb and the like — have opted to loiter in the shadows of private ownership. In recent years, the cachet has been less with a splashy public listing and more with a private deal at a sky-high valuation… these companies have raised billions of dollars of funding and at this stage are in no rush to raise money through an exchange listing… That said, VCs don’t want their holding periods to stretch on forever. An IPO is still the ultimate destination for most start-ups and that is for reasons beyond raising money and cashing out early investors… The pros of going public include the publicity associated with the listing. Employees are given a market for their stock while management gets currency for acquisitions…

 

Nicole Bullock

Food4Brains

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