Initial Public Offering (IPO)
Definition
An IPO is a company’s first sale of shares to the public, listing on a stock exchange and converting private equity into liquid, tradable stock.
How it comes up in fundraising
The IPO is the largest exit path: it provides liquidity for investors and employees and gives the company access to public capital markets.
Frequently asked questions
How big must a company be to IPO?
There is no fixed rule, but modern tech IPOs typically involve hundreds of millions in revenue; smaller listings struggle for institutional attention.
What is a lock-up period?
A window after the IPO, typically around 180 days, during which insiders cannot sell shares.
Related terms
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