A share price reflects the <i>future</i> value of the company&#x27;s profits, not the past value.  If the investing public believes that a large infusion of cash from the IPO will help you achieve profitability, they&#x27;ll gladly invest.<p>Look at a company like Amazon, their net income was stunningly negative for a very long time [1] -- it&#x27;s barely positive today -- yet their market cap is north of $250B.  There is plenty of room for companies making losses to go public if they have a realistic plan to make profits in the future.<p>[1] - <a href="http:&#x2F;&#x2F;i.imgur.com&#x2F;M9igHQK.png" rel="nofollow">http:&#x2F;&#x2F;i.imgur.com&#x2F;M9igHQK.png</a>