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The 2012 JOBS Act permitted Emerging Growth Companies to initiate the IPO process by submitting their IPO registration statements confidentially to the SEC for nonpublic review by the SEC staff.
Corporations can raise funds by selling shares, as Facebook did in its 2012IPO. Shares can be easily sold or transferred, as regularly happens on the New York Stock Exchange. Capacity to Raise Capital. Corporations require substantial resources for setup and compliance, as Tesla's SEC dealings illustrate.
When Facebook went public in 2012, it needed an investment bank to handle the Initial Public Offering (IPO). Goldman Sachs was one of the lead underwriters and earned considerable fees and reputation points for facilitating one of the largest tech IPOs ever.
For example, in the 2012 Facebook IPO, common shareholders gained exposure to the tech giant's fortunes, while also securing a say in corporate matters. By virtue of their ownership, they possess a direct financial interest in the company's success.
After it went public in 2012, Facebook had the capital to grow significantly, acquiring companies like Instagram and WhatsApp, and diversifying its revenue streams. Choosing the right exit strategy—be it acquisition, Initial Public Offering (IPO), or management buyout—is critical. Consider the meteoric growth of Facebook.
Venture capitalists typically have shorter investment horizons and seek quick exits, either through an IPO or an acquisition. In 2012, Facebook acquired the photo-sharing app for $1 billion, a move that was largely driven by the potential for Instagram’s rapid growth and user base. billion.
Other recommendations from Kent include allowing greater access to investment research for retail investors, involving academic institutions in supporting investment research initiatives and reviewing the rules relating to investment research in the context of IPOs.
You might recall that, in 2012, the JOBS Act permitted Emerging Growth Companies to initiate the IPO process by submitting their IPO registration statements confidentially to the SEC for nonpublic review by the SEC staff. By: Cooley LLP
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