Keyport Venture Advisors and John LoPinto are co-founders of a private equity fund and stock brokerage business. One of the key ways that they help individuals is by helping them to invest in private companies, rather than investing in companies that are going public. There are many benefits for both investors and businesses by raising money privately, rather than taking the company public. Read on to learn more about the benefits for businesses that decide to raise private equity money.
Keyport Venture Advisors says that the first major benefit for businesses who decide to raise private equity money instead of going public is that the company gets to remain a private company, rather than a public company. When a business goes public, they then have to think about stockholder interests, rather than running the company how they feel is best. Many companies prefer to stay private, if they can, as they get to retain full control over the business. This allows them to have full control over their business decisions and how the business is managed and run.
Keyport Venture Advisors states that another key benefit for businesses that raise private equity is that there is less regulation involved. When a company goes public, there is a lot of regulation involved. Certain parts of the business need to be disclosed and made public. This allows those who buy stocks in the company to make an informed decision about investing in a company. Not every company wants to deal with the red tape and regulation that is involved in going public, so this can all be avoided by remaining a privately-owned company.
Keyport Venture Advisors explains that the final benefit for businesses who decide to raise private equity money instead of going public is a time benefit. In some cases, a business needs to raise money quickly. They may be able to invest in products or manufacturing equipment and may need the money quickly to jump on a purchase. Unfortunately, the going public takes a lot of time. The company has to be valued and it has to be looked at to determine if it meets the criteria to go public. Businesses that need money now may not have the time to wait and go public. If you are looking to raise capital quickly, remaining a privately-owned company and raising private equity funds may be a better choice compared to going public.
Keyport Venture Advisors and John LoPinto work hard to help businesses raise the private equity they need by connecting investors who are looking to invest in private business with these businesses hoping to remain private. This can be beneficial to both investors and businesses who need the money yet wish to stay privately owned.