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> why couldn't they raise another round of funding? Isn't an IPO just that? A better round of funding that also provides liquidity to shareholders?
by zzleeper 7y ago
> why couldn't they raise another round of funding?
Isn't an IPO just that? A better round of funding that also provides liquidity to shareholders?
- thisisit 7y agoIt depends. If the company uses the proceeds for operations of the company it is another rounding of funding. There are times when the company IPOs specifically to provide exit to the existing shareholder and not adding any money to operations. That being said, public offerings get slightly restrictive on how the company can raise future capital. If Lyft can still grow nearly 100% then I am sure they could have found a VC willing to fund them. And they could have gone public at say 30-50% growth rate.