3 reasons why small business owners should opt for mini IPO

Ever since the change in the jobs act, opting for a mini IPO in raising up to $ 50 million has become possible for most of the growing companies. However, still, this route is very less explored by business owners. Most of the business owners just like to go with the private placements when they want to raise the funds. However, today we would discuss 3 different reasons as to why the business owner should seriously think about the mini IPO.

1. Increasing brand awareness:

When you're able to opt for the mini ipo, you can be sure that since your shares would be accessible to the public, the credibility of your company would be increasing. From an unknown company, your company would now be known among the public investors also. This would ensure that it becomes easier for you to have a credible image. Moreover, at least the investors in your mini IPO would know about the products and services which you have on offer. This would make it much easier for you to get your company to the next level and to achieve the level of success which you have always wanted. Moreover, when you're filing for the mini IPO millions of investors all over the country would come to know about your company.

2. Control would be in your hands:

In spite of raising the capital, you do not have to fear of losing the control. Since the capital raising is limited, you can be sure the majority of the stake would be with you. Also, since there are no venture capitalists or any other private investors involved, you can be sure that the control of the company would always be in your hands which would help you in steering the company in the right direction. Therefore, there is no fear of losing control when you're going for this type of funds raising.

3. Cashing out of existing investors:

With the help of mini IPO, you would be able to provide the present investors with the option of cashing out. This would ensure that while the investors would cash out, your stake would almost be the same. Even though the owners are also allowed to sell their stake in the mini IPO but most of the owners like to wait for the liquidity which comes with the actual IPO before wasting their stake. However, instead of directly going for the IPO, if the sole purpose of the IPO is to provide your early investors with an exit, the mini ipo is one of the perfect options for you.



So, when you're looking at the reasons to opt for the mini ipo, it is important for you to keep these factors in mind and regulation a+ thereafter you would understand why you should go for the mini ipo.