When you start a business, you might dream of taking it public. As you offer your initial public offering (IPO), your stock becomes available for those beyond your initial capital and angel investors.
The ride-sharing service, Lyft, is valued at $15.1 billion after raising $4.9 billion through 18 private capital rounds. But as Lyft gears up for its IPO this month, some analysts wonder if it is too late.
How much money can you raise during an IPO?
Going public can benefit your company tremendously. The funds raised can help a company expand and grow. And through increased scrutiny from investors and the ability to issue stock as part of a deal, corporate law transactions, such as mergers and acquisitions, may be easier to close.
The largest IPO to date was when Alibaba went public in 2014; the Chinese e-commerce company brought in $25 billion. The next four largest IPOs include:
- Agricultural Bank of China Ltd. - $22.1 billion in 2010
- General Motors Company - $20.1 billion in 2010
- NTT Docomo, Inc. - $18.4 billion in 1998
- Visa Inc. - $17.9 billion in 2008
But now Lyft aims to set the stage for technology companies preparing for IPOs this year.
Tech companies planning to go public this year
Lyft’s goal is to have the largest technology IPO since 2014. Looking to increase their valuation to $23 billion when it hits the stock market, Lyft would be the closest tech rival to Alibaba’s 2014 $169 billion valuation.
Other tech companies gearing up for IPOs in 2019 include:
If you consider taking your company public, it could be helpful to pay attention to what others are doing and learn from them. And if you are not interested in Lyft’s proposed $62-$68 share price, you might want to keep an eye on their closest competitor. Uber anticipates a $120 billion valuation when they go public later this year.