Ian Verender

Well, if you're the first to get to market, you're the first one to take the money.

And look, there's an important distinction here.

When you float on the stock exchange or you launch your IPO, the money comes in.

Now, let's say they raise a trillion dollars and then the share price goes up.

But when the share price goes up, that's not extra money flowing into the company directly.

That's the people who own it, the shareholders who own it.

That's the value of their shares rising.

And when the value of the shares rise, it obviously makes it easier for the company to raise cash elsewhere, either from banks or from lenders, wherever.

But the initial public offering itself is where the grub state comes from.

So that trillion dollars goes into the company, it goes into investment, into the founders' pockets, wherever it goes.

And then after that, once the share price rises, because the company is more valuable, it makes it easier to raise debt.

And because you have a debt to equity ratio often.

So if your company is worth, say, a trillion and then the value of it goes to two trillion, you can raise a lot more debt elsewhere.

Yeah, look, there's a bit of a thimble and pee trick with private companies who raise cash like that.

What they'll say is, you know, they'll raise, say, $10 million and sell 10 million shares for that.

And then in the next raising, they'll raise another $10 million, but for 5 million shares.

And then they'll say, well, the value of our shares has doubled.

And then this is the way a lot of private companies, and there's a couple of big Australian companies that have been doing this as well.

Canva is one of them.

So their valuation is based on an internal kind of round-robin raising of cash.