when considering flotation as a means of raising capital companies may also look to other private funding sources before deciding to become a public company these alternative sources of funding may include small business loans equity crowdfunding angel investors or investment from venture capitalists however when seeking additional private funding companies will still incur legal fees and extra costs for deal structuring and accounting 
many private companies choose to receive private funds for the benefit of fewer transparency requirements private companies may also wish to remain privately funded because of the high costs associated with restructuring and an initial public offering ipo 