# What is IPO? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Exit  
> **Canonical Citation:** [https://spidits.com/startup-glossary/ipo](https://spidits.com/startup-glossary/ipo)

## Definition
An IPO (Initial Public Offering) is the process by which a privately held startup lists its shares on a public stock exchange for sale to the public.

## Architectural Mechanics & Deep Dive
An IPO (Initial Public Offering) is the process by which a privately held startup lists its shares on a public stock exchange (such as Nasdaq or NYSE) for sale to the general public. An IPO provides massive liquidity for founders, employees, and early-stage venture investors, while raising significant capital to fund long-term expansion. IPOs require rigorous regulatory compliance and financial reporting.

## Industry Applications & Real-World Use Cases
Late-stage corporate recapitalization and liquidity events

## Frequently Asked Questions

### What are the benefits of an IPO?
Access to massive public capital markets, increased brand visibility, liquidity for shareholders, and currency for future acquisitions.

### What is the lockup period in an IPO?
A contractually defined period (typically 90 to 180 days) during which insiders (founders, early VCs) are prohibited from selling their shares.

## Related Terminology
- [exit](https://spidits.com/startup-glossary/exit)
- [acquisition](https://spidits.com/startup-glossary/acquisition)
- [secondary-offering](https://spidits.com/startup-glossary/secondary-offering)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*