Initial Public Offering
Also called IPO
Initial public offering: when a private company first sells shares to the public and lists on a stock exchange, raising capital and giving early shareholders a path to liquidity.
Why it matters
An IPO is the marquee exit, but it is rare, demands scale, predictability, and readiness for public scrutiny, and is not the right goal for every company. For most startups it is a distant possibility, not a near-term plan.
For example
After years of scaling, a startup goes public, selling shares on the exchange and giving early employees and investors a way to cash out.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Founder life, part of the Starting Up hub.
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