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Why does a private company trying to go public need to raise money from investors?
by ausbah 7y ago
Why does a private company trying to go public need to raise money from investors?
- bin0 7y agoA large part of this is allowing their employees to cash out. When a company goes public, there is often a clause that prevents sales for a certain number of months, and who knows what the share price will do by then. This is actually a really good thing for Unity to do, trying to make the "stock compensation" perk into a meaningful cash-out. It also means employees don't have to deal with holding shares in a public company if they don't want to, as that's hassle.
- appstorelottery 7y agoThey stated one of the reasons was increased liquidity. But if you look at the jobs - they’re hiring pretty intensely at the moment - it looks like they’ll increase their workforce by around 7%.