Yeah, the modern landscape uses an IPO not as a fundraiser for growth or expansion.
It's a tool to payback original investors, and insiders using public excitement.
This can be seen very easily in the share of startups that the public gets any exposure to, during their growth phase. This has rapidly declined since those policies changed, and almost all growth is now only exposed to private lending markets. By the time a company IPOs now, it's the exit strategy, not the fuel of another growth multiple on the business.
It's a tool to payback original investors, and insiders using public excitement.
This can be seen very easily in the share of startups that the public gets any exposure to, during their growth phase. This has rapidly declined since those policies changed, and almost all growth is now only exposed to private lending markets. By the time a company IPOs now, it's the exit strategy, not the fuel of another growth multiple on the business.