IPO Access for Everyone?
With the democratization of the capital markets, Main Street investors are wanting to find out how to get in on all the various opportunities that Wall Street investors have access to. IPOs have traditionally only been available to a very small segment of large investors because, as this article puts it, “companies and their investment bankers tightly control allocations to investors in new listings.”
The thing is, there’s already another way to allow the general public to invest in your company BEFORE you IPO on a stock exchange: Regulation A+. It hasn’t received the media coverage that big IPOs and SPACs have recently, but it’s a proven path for doing substantial raises from Main Street investors.
Robinhood building platform to allow users to buy into IPOs, sources say
Robinhood is building a platform to “democratize” initial public offerings, including its own.