Is an IPO the best goal for an Entrepreneur?
Social stereotypes of the sterotypical entrepreneur are the high-growth startup concluding with an IPO stock offering to take the new company public. But is an IPO necessarily the best economic path for an entrepreneur?
Often an IPO is the exit strategy for the original venture capital investors. The public offering may not be in the best interest of the company or the entrepreneur. The typical venture capitalist is looking for a quick turn around to execute an exit strategy. Since venture capital is the most expensive financing available to a company, they often have given up sufficient control, that an IPO may be imposed upon a company regardless of whether it is in the best economic interests of the company.
