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Outlook Good

2007 pays off for small-business IPOS. Can you expect the same in your future?

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This story appears in the February 2008 issue of Entrepreneur. Subscribe »

Investors are hot for shares of publicly traded , which were stars last year. Entrepreneurs who took their companies public this past year say the arduous process was well worth the effort. Eighty-seven companies with annual sales between $1 million and $100 million held their IPOs in the first three quarters of 2007, according to data compiled for Entrepreneur by research firm Renaissance Capital. As of September 30, those small-company IPOs had an average 16.1 percent return, beating Renaissance's index of recent IPOs, which had a 13.1 percent return. Renaissance principal Kathleen Smith attributes the strong showing to investors' interest in fast-growing businesses and --descriptions that fit many of the smaller companies that went public.

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