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.

Related terms

Exit Liquidity Event Series C and Beyond

Go deeper

See how founders actually handle this on Founder life, part of the Starting Up hub.

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