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Many entrepreneurs still dream of “going public,” making billions of dollars, and playing with the big boys. They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control.

Even though the Initial Public Offering (IPO) alternative for a successful startup seems to be coming back into vogue, it is still extremely rare. Only about a dozen U.S. companies made the IPO transition in 2009, out of thousands of startups. Even in most of these cases, the original startup founders were pushed out, or heavily supplemented, with “experienced” executives.

 

To read the full, original article click on this link: Real Entrepreneurs Exit If Their Startup Goes Public - Martin Zwilling - Startup Professional's Musings - Forbes

Author:Martin Zwilling