IPO (Initial Public Offering)

An IPO is a company's first sale of shares to the public, listing it on a stock exchange and converting all preferred stock to common. For venture funds it is the marquee exit, but liquidity is not immediate: insiders are typically locked up for around 180 days, after which funds sell down or distribute shares in-kind to LPs. Post-lockup distribution strategy — sell, hold, or distribute — meaningfully affects realized returns.