Updated: Feb 10
Growing businesses often need capital to not only maintain their growth but also to “pour more gas on the fire.” Now, there are many ways to acquire capital for your business, whether it’s a bank loan, private angel investment, venture capital, etc.. the list goes on and on. Going public is another one of these options, and here is why it might be right for you and your business.
1. Access to capital - The public markets have arguably the most robust access to the capital network on the planet. This network can often reduce the amount of time needed to raise capital when compared to other types of financings. Our typical amount raised for each business is between $1M-$20M+ during the go public process.
2. Cashless acquisitions - Once you become publicly traded many businesses leverage this position to purchase their competitors. You’re able to do this by issuing shares in your company to the acquisition target, allowing you to complete the transaction with little to no cash.
3. Liquidity - Your founder(s) and investors will now have the ability to sell their shares to other eager investors that would like to back your company.
4. Grow your revenue - Being publicly listed gives your businesses a lot more credibility and visibility for business development when negotiating deals with other companies.
5. Employee retention and recruitment –You can provide an employee retention program that works through a stock-based compensation strategy. Therefore, helping you to attract and keep your best people.
The decision to go public isn’t something to be made lightly, this can be a pivotal decision for your business going forward. A big part of what we do here at GoPublic.AI is to educate founders and management teams about the journey that lies ahead during a go public listing, most founders find this process to be much more simple in reality than what they had previously thought. Read this article to learn more about the actual process, timelines, and costs of going public.
Click here to take our 10-minute assessment. If your company is selected we will help you raise between $1M-$20M.