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

Because you’re selling part of the company in exchange for cash. 

 So say you start a company, that’s called Microsoft, you own 100% of the company you decide to sell off 50% of it to investors for a billion dollars. You now have a billion dollars however half your profits now have to go to the investors.