| ▲ | applebottomjean 3 hours ago | |
If companies were already profitable why would they go public? | ||
| ▲ | stingraycharles 3 hours ago | parent | next [-] | |
To let early investors exit? Most private funds like that have a horizon of 10 years, so they want to sell their investments at some point. | ||
| ▲ | ben_w 2 hours ago | parent | prev | next [-] | |
Same reason they take private investments or loans: To grow faster than would be possible without that. | ||
| ▲ | saalweachter 36 minutes ago | parent | prev | next [-] | |
It used to be the norm for companies to become profitable, then IPO, moreso for megacorps. If I am remembering my history correctly, the first company to go public with a multi-billion dollar valuation while being unprofitable was Netscape, which kicked off the dotcom bubble. | ||
| ▲ | infinite_spin 2 hours ago | parent | prev [-] | |
public investment can be magnitudes larger than your profit, allowing growth that would otherwise not be possible | ||