The absolute beginner's guide to how and why tech companies get on the stock market, and why Uber is waiting so long

REUTERS/Danish Siddiqui

Back in the late '90s, getting a startup big enough to get onto the stock market was the thing to do. 

Now, a market crash, a Great Recession, and a possible tech-bubble burst later — investors are scaling back how much money they put into startups, and the public stock market is increasingly volatile.

Still, going public is often viewed as the end goal for ambitious young tech companies. 

Here's how and why startups wind up on the stock market — and why big players like Uber are increasingly shying away.

The vast majority of privately held tech startups are funded by venture-capital investments. Ride-hailing company Uber leads the pack today, having scooped up a record-setting $8.81 billion from investors.

REUTERS/Danish Siddiqui

Whenever an investor puts money into a startup, they get a slice of ownership in what they hope will one day become an immensely valuable startup.

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Cash-strapped startups can go back to the well to raise more money as many times as they can convince investors to pay up. For instance, genetics startup 23andMe raised $225 million in six funding "rounds."

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See the rest of the story at Business Insider