Five friends from college have grown their mobile messaging business into a powerhouse with over 700 million users worldwide. They have received venture capital funding in the past but now need a much larger round of funding to fuel their high growth potential. What is their most likely source of funding?

Question

Quizplus · Accepted Answer

With over 700 million users, the mobile messaging business has already reached a significant scale and may be ready for a public stock offering to raise the large amount of funding required for continued growth. Personal funds, family, and friends would not be sufficient for such a large round of funding, bank lending may not be feasible or desirable for a young, high-growth startup, and angel investors may not have the ability to provide the necessary capital.

Five Friends from College Have Grown Their Mobile Messaging Business