Faced with the prospect of positive and negative network externalities and the all-or-nothing phenomenon, digital product (DP) firms must choose the timing of their capital acquisitions carefully. Moreover, with typically high fixed-to-variable cost ratios, the risk to recovering the initial investment is critical. In this chapter the authors discuss various forms of financing for the DP firm, both short-term and long-term, with these issues in mind. But our primary focus is the initial public offering of equity (IPO) and particularly its timing. Through empirical analysis and case studies we show that if DP firms issue too early in their life cycle they may receive a price for their shares that is not commensurate with long-term prospects. However, issuing too late may mean that they either cannot sell shares or are unable to recover their initial investment.