Category: Financial
- Published: 27 April 2014
- Written by Editor
Posted by Ivanhoff on April 25th, 2014 at 1:29 pm
Crowdfunding has existed forever. It has recently become popular via Kickstarter, where companies could raise money by promising to deliver product or a service at a future date. This is not the type of crowdfunding I refer to in this post. By crowdfunding, I mean obtaining equity in private companies.
So, why is this subject so important to someone like me, whose entire edge is in public markets?
First, let me remind you of the main purpose of Initial Public Offerings.
Companies go public:
- to offer liquid exits for founders, employees and private investors;
- raise capital to expand;
- achieve higher valuations;