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There is the possibility of being bought by a larger company. I've known technology startups have this as the main exit strategy and succeeded.
by fsloth 11y ago
There is the possibility of being bought by a larger company. I've known technology startups have this as the main exit strategy and succeeded.
- benmanns 11y agoOr the possibility of being profitable and paying dividends to owners like companies have done for centuries before now.
- maneesh 11y agowhat do you mean??
- ethanbond 11y agoIt's possible to simply pay your shareholders out of your profits based on their stake. I have no clue why people think IPOs are the only way to go liquid.
- tryitnow 11y agoIf a company is financially mature enough to pay dividends then it's mature enough to go public. And going public does enhance your value - ceteris paribus. When we talk about "liquidity" we're talking about the ability to sell your assets, not the ability to derive a cash income (dividend) from it. And a share in a public company is almost always going to be more liquid than a share in a private company.
- ethanbond 11y agoAh, good points. Thanks for the clarifications!