New York City, NY -- (SBWIRE) -- 10/23/2012 -- For Immediate Release Crowdfunding gets boost as Twitter invited to use it to launch initial public offering On the news that Twitter was considering going public, the social media giant is being invited to sidestep the expensive Wall Street initial public offering (IPO) process and take its stock direct to the public from the start. IPOVillage.com, one of the internet’s largest direct-to-the-public initial public offering (IPO) companies, sent letter to Dick Costolo, Twitter’s CEO. The letter encourages Twitter to take its IPO direct to the public so the public will see the greatest benefit and return. The letter can be read at http://ipovillage.com/ipo-village-blog/open-letter-twitter-ceo-dick-costolo . The letter has generated considerable interest in the financial world. Companies previously not familiar with the crowdfunding option for an IPO are now seriously considering the option.
“When a giant company even takes a look at something, the rest of the world also looks. Some go further and do whatever the giant company looks at. The attention Twitter is bringing to crowdfunding would be very hard to over estimate,” said Howard Orloff, mayor of IPOVillage.com . Mr. Orloff wrote the Twitter letter. WHAT IS IPO CROWDFUNDING IPO Crowdfunding takes a company’s stock and offers it direct to the public. Large investment banks and Wall Street financial attorneys are not used nor needed.
IPO Crowdfunding eliminates the enormous costs associated with the industrial investors and puts more money directly into the business coffers. Also, since the stock is offered directly to the public, the company gets a realistic view of what it is worth. Inflated values, such as happened with Facebook, will be far more rare with a crowdfunded IPO. “The company saves money by not paying percentages and commissions to people who trade the IPO stock among themselves before giving the public a chance to buy. The company also gets to keep far more of the IPO sale because there are fewer expenses,” Mr. Orloff said.
Another advantage to crowdfunding for an IPO is the people who support the company benefit. “Think about who supports your business - your customers. If customer service is the most important service you offer, then your customers deserve the best. Let them buy IPO stock direct and invest direct in a company they believe in,” he said. “Let the customers, who have made your company a success, share in the future success of your company. “Crowdfunding puts an IPO directly into the hands of the people who both care about the company and who will make the company a success.”” CROWDFUNDING IS FOR ANYONE Any business with a successful business plan and an eye for growth can participate in crowdfunding. The idea that an IPO is only a function of ginormous corporations is wrong, Mr. Orloff said. “Crowdfunding is not just a way to take stock direct to the public for giant, global corporations like Twitter. It works for small companies too,” he said. “If you run a company of just a handful of employees all the way to one as big as Twitter, you can have an IPO and sell stock to the public.”
IPO Village and First Line Capital invite small business owners who are interested in finding out if their company might benefit from a Crowdfunded IPO are invited to request a free analysis through IPO Village.
If your company has a strong base of customers, you will likely be surprised at how cost effective a crowdfunded IPO can be.
To learn more about crowdfunding and how it can work for you and your company, visit: http://ipovillage.com and click on the Sign Up link.
About The IPO Village
The IPO Village founding team has been successfully taking early stage companies public for over 20 years. The company has directors with an investment banking background. Thanks to the monumental advances in online social media networking capabilities, lucrative pre-IPO investment opportunities can now be made directly available to the general public, the 99%, the Crowd. IPO Village’s public offerings provide shareholders with the highest level of company screening and due diligence, investor liquidity and a foreseeable exit strategy.
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