{"id":46457,"date":"2024-10-14T15:39:41","date_gmt":"2024-10-14T10:09:41","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=46457"},"modified":"2025-11-10T13:34:51","modified_gmt":"2025-11-10T08:04:51","slug":"the-rise-of-ofs-3-reasons-why-startups-opt-for-investor-exits-over-growth-capital","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/the-rise-of-ofs-3-reasons-why-startups-opt-for-investor-exits-over-growth-capital\/","title":{"rendered":"The Rise of OFS: 3 Reasons Why Startups Opt for Investor Exits Over Growth Capital"},"content":{"rendered":"
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The landscape of startup<\/a> funding is experiencing a significant shift. While venture capital (VC) funding grabbed attention in recent years, there’s now a rise in startup IPOs with more “Offer for Sale” (OFS) portions. This shows a growing focus on investor exits as new capital becomes harder.<\/p>\n\n\n\n

The increase in the “Offer for Sale” (OFS) portions shows that investors are eager to exit and cash out their investments<\/a>. They are also achieving this by selling shares through pre-IPO secondary rounds, which allows them to generate liquidity before the company officially goes public. This trend highlights the pressure on investors to secure returns as their investment cycles end.<\/p>\n\n\n\n

What is OFS<\/strong><\/h2>\n\n\n\n

Before diving into the details, let\u2019s first understand OFS. OFS, or Offer For Sale, is a way for promoters of public companies to sell their shares directly to the public through a bidding process on the stock exchange. This method allows them to reduce ownership and meet the minimum public shareholding requirements.<\/p>\n\n\n\n

Increase in Startup IPO Offers-for-Sale Driven by Fund Cycles and Investor Exits<\/strong><\/h3>\n\n\n\n