Is The New Public!
The IBO – Initial Backers Offering process is where a private company sells shares (typically non-voting common shares) in their business to their own Audience, Customers, Clients, Users, Community, Investors, or as we like to call them Backers. Commonly known as Equity Crowdfunding which takes advantage of several Regulatory Exemptions in both Canada and the USA.
Unlike an IPO – Initial Public Offering the company remains a privately held company avoiding the unnecessary and unwanted reporting and scrutiny that come with going public while still benefiting from widespread awareness to build their brand on and the ability to raise capital by selling their shares to a large group of retail investors…
After an IBO, the issuing company remains a privately held company with their shares listed on a regulated secondary exchange providing liquidity for shareholders.
So, rather than “going public” an IBO can be referred to as “going backers”.