Startups Preferring IPO Over VC Funding: A Strategic Shift in Entrepreneurial Finance

Abstract

In recent years, a growing number of startups have opted for Initial Public Offerings (IPOs) over traditional Venture Capital (VC) funding. This shift reflects a strategic recalibration driven by the desire for autonomy, broader capital access, and market credibility. While VC funding offers mentorship and early-stage support, IPOs provide liquidity, valuation transparency, and reduced dependence on concentrated investor control. This paper explores the motivations behind this trend, supported by empirical literature and real-world examples from India and abroad. It also offers strategic suggestions for startups navigating this critical decision.