> I'd say that the point of 'going public' is to provide liquidity to existing shareholders (e.g. founders, employees, outside investors). There are other ways to raise money, if that's all you want.
Actually, the point of an IPO is to raise money, from the public markets. It's an Initial Public Offering, and the company can raise more at a later date by issuing more shares. The liquidity wouldn't exist if people didn't want those shares.
The IPO just happens to be a convenient time for current shareholders to sell their stake (as part of the offering) but even then, there are rules about how they can do that (lock-in periods, etc)
Actually, the point of an IPO is to raise money, from the public markets. It's an Initial Public Offering, and the company can raise more at a later date by issuing more shares. The liquidity wouldn't exist if people didn't want those shares.
The IPO just happens to be a convenient time for current shareholders to sell their stake (as part of the offering) but even then, there are rules about how they can do that (lock-in periods, etc)