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What is an initial public offering?

Christina Hernandez Sherwood on May 12, 2014

What is an initial public offering?

Selling stock to the public not only offers liquidity to company founders, but it's also "a signal to the world that the business has made it." Going public can help a company attract talent, give it currency to grow and acquire other companies, and generally raise its profile. Getting there can be a long and challenging journey, especially for the CEO and CFO of an organization.

The conventional wisdom is that it takes life science companies longer to reach the IPO stage than it does tech startups. The median time it takes a medical device or healthcare services company to go from founding to an initial public offering is seven to 10 years.

Related: Funding Sources for Life Science Startups

Photo by Bildagentur Zoonar GmbH

FAQs are a weekly feature on eMed for current and aspiring healthcare entrepreneurs.

Category:  Creation  Tags:  FAQ, funding, initial public offering

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