Share your insights or perspective on the financial matter presented in the input.

Must a company have a specific number of employees to do an IPO?
While there is no legal reason to have a minimum number of employees, there can be a practical reason.   They want to look like a good solid investment so that investors will give them money, which is what an IPO is, really.  Hiring lots of people is part of that. Once the investors are committed, they can cut expenses by firing people again. I have no idea how common this is, but it is a possibility.  However, if it were really common, investors wouldn't be fooled anymore. Also, they risk being sued for fraud over this. Even if your friend's worry is probably unfounded, you should be aware that working for a startup is always risky.  They very often go bankrupt even if they try their best.  They can misjudge their intended market. They can get higher expenses than expected. There can be another company with same idea being launched at the same time.  Other things can go wrong. Working for a startup is a risk, but it beats being unemployed, right?