I’m currently in the unforeseen but very fortunate position of having near front row seats in multiple companies that are IPO candidates. The related discussions are equal parts thought-provoking and stressful. Some thoughts: /1
If the leadership team doesn’t want to go public, there’s little to discuss. I can’t imagine anything more destructive to value creation that trying to force an unwilling team to make a dramatic change in corporate governance. /3
That is the primary reason to consider an IPO. IPOs are not liquidity events for founders.
I repeat:
🚨🚨🚨 IPOS ARE NOT LIQUIDITY EVENTS FOR FOUNDERS 🚨🚨🚨
/5
The cost of preparing to file starts at millions. There are real jumps in expected salary costs to support a public company CFO as well as their staff. That's just the start. If the company can’t view these costs as rounding errors, they’re not ready. /11
The IPO window was wide open post Datadog, but WeWork slammed it shut. Now it seems fitting that all are doing the math with extra vigilance. Companies in hot verticals need to figure out if they want to be the ones to test conviction. /15
Not to do so is unforgivable - it is misaligned with the thoughtfulness, tenacity, smarts and courage that got you to this enviable moment. /20
Having *built the IPO-ready business* is the massive milestone.
And that is what deserves the real celebration of the founders and the teams.
/End