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As somebody with very little understanding of the business world: why would a seemingly successful organisation like this become a public company? What benefits
by cpressland 2y ago
As somebody with very little understanding of the business world: why would a seemingly successful organisation like this become a public company? What benefits are there?
- mschuster91 2y agoBetter access to external funding, for one.
- mytailorisrich 2y agoIt allows the company to raise money and existing shareholders to cash out or at least to turn their shares into liquid ones (that they can sell easily), with a "real" market value. In this case, the article says that they've raised $200 million, which means they sold new shares as part of the IPO.
- nicce 2y agoEither they want to start rapidly growing or it is exit plan for the founders. But if they company is very profitable already, this should not be necessary. They could still grow with complete mission-oriented way.
- mbs159 2y agoI wonder what the impact would be to us (consumers) if there would be pressure from shareholders to increase profits. Will future Raspberry Pies be completely bare-bones unless you pay a hefty premium?
- nicce 2y agoEither prices start to increase, product quality lowers or the end-users will become the product. Or maybe all of them. Or maybe nothing changes, but unfortunately history proves otherwise.
- thfuran 2y agoThere will always be pressure from shareholders to increase profits.
- deleted 2y ago[deleted]
- avsteele 2y agoIf you want to raise a ton of money for expansion this is (mostly) the only way.
- jjdhchdbeb 2y agoFunding is one reason but the real one a lot of times is you hit hard legal limits on how many people are on your cap table before it’s just easier to go public. Meaning if you want to keep giving equity to employees you are almost forced to go public.
- tim333 2y agoFounders can finally get their mansions.