> In the U.S., the cost (to go public) is $2 million to $3 million and (start-ups have to meet the bar of) $100 million in (annual) revenue.
I am confused. What about that guy who is taking his beer pong table business public to raise 12,000? And what about other penny stocks? Can some one clarify by what he means by it costs 2 million to go public and your company needs to have a 100 million in revenue?
The beer pong guy was only trying to raise $10,000 and had one employee. Trying to raise millions requires finding investment banks with rich clients who will subscribe to your initial offering. If a firm wants to raise millions in an IPO (and you aren't Google), you have to hire one or several investment banks to shop your shares around. They charge huge fees, typically a percentage of the total offering.
Comments
> In the U.S., the cost (to go public) is $2 million to $3 million and (start-ups have to meet the bar of) $100 million in (annual) revenue.
I am confused. What about that guy who is taking his beer pong table business public to raise 12,000? And what about other penny stocks? Can some one clarify by what he means by it costs 2 million to go public and your company needs to have a 100 million in revenue?
The beer pong guy was only trying to raise $10,000 and had one employee. Trying to raise millions requires finding investment banks with rich clients who will subscribe to your initial offering. If a firm wants to raise millions in an IPO (and you aren't Google), you have to hire one or several investment banks to shop your shares around. They charge huge fees, typically a percentage of the total offering.
Thank you for clarifying and educating me.
Wow down votes for an honest question! I don't get it?