After establishing your business as a fledgling competitor, vying for survival among industry veterans and giants, a young company (if successful) will continue to expand and probe into new markets and potential industries. But as the organisation approaches its critical mass — the point at which the company’s current resources are insufficient to maintain its upward trajectory — external resources go from “would be nice” to a prerequisite for success.

Consider the fact that corporations commit to IPOs for the same reason that small vendors apply for business loans from local banks: both seek to expand or maintain growth in profits or revenue but require additional capital to do so. Not only is this aspect of economic life accepted, but modern economies have become wholly reliant on the cycle of capital-raising to power the investment landscape (underpinning pensions, mortgages and the societal wellbeing provided by an ability to build for the future)...

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