How Small Companies Choose Investors Instead Of Initial Public Offerings To Borrow Money: A Descriptive Study

Abstract

This research paper shed light on how small cap companies acquire funds. It focuses on a new trend available for small companies and for private investors instead of an old option or traditional way of Initial Public Offerings (IPOs) to raise money. The study focuses on changes happening. It justifies it for different reasons like new technology, too many rules for Initial Public Offerings, uncertain stock markets, wanting more control over their business, and thinking about growing for a long time. To understand these reasons better, the research referred to information from financial reports, academic studies, and market analysis. It focuses on small companies and private investors in India. The study suggests that small companies are now looking at other trending options to acquire money, like crowdfunding platforms and Special Purpose Acquisition Companies (SPACs), instead of just doing Initial Public Offerings. These alternatives have different advantages for the small cap companies like fewer rules to follow, more control over their business, and a focus on long-term growth. The research study focused on new trends or patterns of raising funds for companies like direct listings and using SPACs instead of Initial Public Offerings In nutshell this research helps us to know how small companies are changing their way of acquiring money. It gives insights that can help entrepreneurs, investors, and financial experts make better decisions in today's complex financial world.