What notable aspect of the IPO process is mentioned as outdated?

• A. Use of traditional brokers
• B. Investment in public companies
• C. Overall capital raising process
• D. Company valuations

Answer: (C)

The capital raising process is considered notable as being outdated due to its traditional methods that often do not align with the current advancements in technology and investor behavior. Historically, companies relied heavily on roadshows, in-person meetings, and a limited number of broker interactions to gauge interest and raise capital from institutional and retail investors. However, modern-day practices have shifted towards more inclusive and efficient methods such as online platforms and digital marketing strategies, which enable a broader reach and engagement with potential investors.

As a result, the traditional capital raising process may not fully tap into the evolving market dynamics and investor preferences, which emphasize agility, transparency, and real-time access to information. This shift signifies that while companies still utilize elements of the old system, the overall method of capital raising requires modernization to better align with contemporary practices, ensuring that companies can efficiently access the funds they need to grow and establish themselves in the marketplace.