• Post category:Articles
  • Post published:1 April 2021

Why Some Are Considering Micro-IPOs

In some ways, an IPO can be a superior exit strategy to selling your company. When selling a company, you run the risk of losing the very thing you worked hard to create. A venture capitalist may not share the same ideals as you do, especially when their primary concern is a return on their investment.

1 April 2021

In contrast, an IPO allows you to retain management control of your company and continue to choose how you want to manage it along with board oversight.

Listing on a Senior Stock Exchange and going through the IPO processes is an excellent opportunity for entrepreneurial growth companies to access capital and enter capital markets. A micro-IPO is more accessible than ever before, and is a valuable and essential vehicle to access growth capital.

There’s been a return to the high volume of IPOs seen during the dot-com era of the 1990s. However, after the dot-com bust, the Wall Street myth that small IPOs are too expensive and risky became widely accepted. During the dot-com bust, the notion that a small company should not take on the risk or burden of the costs, obligations and potential liability of an IPO became commonplace. This myth, perpetuated over the past 20 years, has created a barrier to entry at a considerable cost to entrepreneurs, investors and the world.

An IPO is perhaps more within reach than you might imagine and could be a significant way for your company to grow, access capital and gain market share.

The next installment of this monthly articles series will discuss how to access a micro-IPO and how to prepare for one.

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