What to consider before selling shares in an IPO for a startup biotech company.
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There might be a misconception that the ultimate measure of success for a company is public ownership and a listing on the stock market, but going public is not always the best choice for a small business, especially in as volatile an industry and biotechnology. The following is a list of benefits and drawbacks to consider before making an
IPO of startup shares.
Background
Going public with a new company starts with an IPO and means selling stock in the company to shareholders. From that time forward, every shareholder owns a piece of the company. This can be beneficial to a startup trying to
secure research funding, but there are also some drawbacks.