As a former investment banker who has worked on numerous IPOs and follow-on offerings, there is only one thing you need to have a successful IPO: Institutional

As a former investment banker who has worked on numerous IPOs and follow-on offerings, there is only one thing you need to have a successful IPO: Institutional buyers who want to buy the stock at a price acceptable to the company. Back in 1999, they'd buy anything with .com in the name; nowadays, they want to see a pretty clear path to sustainable profitability. That doesn't mean you actually have to be wildly profitable; just that you're of a sufficient size and have implemented a clear business model. Facebook, LinkedIn, Zynga, and countless others could IPO tomorrow if they wanted. Twitter's issue isn't profitability; it's size. $25 million in revenue just isn't big enough to get out just yet. If you're looking for precedents, the best one (due to its recency and characteristics) is OpenTable's recent follow-on offering. The prospectus is worth a read: http://edgar.sec.gov/Archives/edgar/data/1125914/000104746909008486/a2194679z424b4.htm http://edgar.sec.gov/Archives/edgar/data/1125914/00010474690... Here's their IPO prospectus from earlier in 2009: http://edgar.sec.gov/Archives/edgar/data/1125914/000104746909005875/a2193211z424b1.htm http://edgar.sec.gov/Archives/edgar/data/1125914/00010474690...