Eli5: How does a private owned company benefit itself financially by going public?

Question

Eli5: How does a private owned company benefit itself financially by going public?

In: Economics

Answer 1

Uber made money for the first time in its 15 yrs of existence in 2023.

The founders have been billionaires for a long time — and cashed out many hundreds of millions in the interim. Many of the employees have also made a ton of money thru the stock.

It’s often a way to monetize in industries where the stock valuations are much higher than earnings would normally justify.