Initial Public Offering (IPO)
In an IPO, the firm sells shares to members of the public for the first time.
The VC will typically not sell its shares into the public market at the date of the public offering.
Rather, securities will be sold into the market over a period of months or even years following the public offering.
Alternatively, after the offering, the VC may dispose of its investment by making a dividend of investee firm shares to the VC's owner (subscribers to the fund).
In an IPO, the firm sells shares to members of the public for the first time.
The VC will typically not sell its shares into the public market at the date of the public offering.
Rather, securities will be sold into the market over a period of months or even years following the public offering.
Alternatively, after the offering, the VC may dispose of its investment by making a dividend of investee firm shares to the VC's owner (subscribers to the fund).