IPO

Definitions

1. Initial Public Offering — when a private company sells shares to the public for the first time, listing on a stock exchange. The traditional 'endgame' for VC-backed startups, where early investors and employees can finally convert their equity into actual money.

   In plain English: When a private company starts selling its stock to the general public for the first time — often the big payday for early employees and investors.

Etymology

1602

The Dutch East India Company holds what is considered the first IPO, selling shares on the Amsterdam Stock Exchange

1995

Netscape's IPO at $75/share (from $28 opening price) kicks off the dot-com era and makes IPOs central to tech culture

2020

Direct listings (Spotify, Slack) and SPACs challenge the traditional IPO process, though most tech companies still go public conventionally

Related Terms

• Unicorn
• Series A / B / C
• Acqui-hire
• Exit
• Vaporware
• Decacorn
• Incubator
• Accelerator
• dot-com bubble
• Acqui-hire
• Public Company
• SME
• W-2