is IPO usually the final stage in funding lifecycle? explain

Expert Solution

Initial public offering is generally the last stage of funding life cycle because this will be providing an exit for various types of the venture capitalist who are already invested into the company and when the company will be listed on the stock exchanges, it will be increasing the business reputation and increasing the possibility of higher liquidity, so this will be providing a chance for the venture capitalist and other investors to exit at a premium valuation so this will be final stage in the funding lifecycle of a company.

Initial public offering is offering of shares by private company when it is getting listed into the stock exchanges and generally those venture capitalist and angel investors who have already invested their money in the businesses at budding phase,are trying to cash out by offering their shares in public market so they will be trying to exit at a premium valuation and it is often the last cycle of fund-raising for a business.

Hence the given statement is TRUE.

jeff jeffy answered 2 years ago

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