Dreaming of a Californian Share Price
California is home to many big-name IPOs—but there are more ways in than the IPO.
Ah California. Home of Silicon Valley. Home of Silicon Beach. Home of more billionaires than every other country in the world except China and the U.S. When it comes to creating companies that change the world, California is often depicted as paradise.
But it’s not just exclusive tech giants up north who live here too. We, StartEngine, live in California, and it’s our goal to democratize capital.
Amidst talk of IPOs in Southern California (ahem… Snapchat), we are reminded that a companies no longer need to daydream about the day they go public. Instead, they can start public.
Because the truth is there’s no real difference other than timing. With Regulation CF and Regulation A+, you can own shares in companies before they “go public.” You can be a part owner, so to say, of companies that you want to see succeed, and you don’t have to wait until IPO day. We like refer to this type of share ownership as Online Public Offerings (OPOs).
Relatively speaking, only a few people in the world had access to this type of shareholding before May 2016. You either had to be a (wealthy) accredited investor or some tech wunderkind who happened to be employed at a growing company and offered stock.
And if it helps put anything in perspective, for employee shareholders, an IPO can often prove to be more stressful than you might think.
With equity crowdfunding, companies invite investors like you, the public, on board right away. You don’t need to be a VC or an angel investor or an anxious employee to get stock in companies that you think are impressive. You don’t need to be California wealthy either.