Getting to IPO with Aaron Levie and Jennifer Tejada

TL;DR

IPOs present a tale of two stories, with some companies struggling to live up to their private market valuations while others find success in the public market. Going public is not the end goal but the beginning of a long journey to build a durable business. The IPO process is about demonstrating the viability of the business and extending the brand platform.

Transcript

[Applause] [Applause] following a movie star yeah obviously now it's time to talk about enterprise software so that's gonna get happy yeah it's definitely the act to be following totally nobody's leaving so we'll get fine okay good now stay in please we're talking about we're gonna talk about SAS multiples it's gonna be awesome valuations people va... Read More

Key Insights

• 🇨🇫 IPOs in 2019 had mixed results, with some companies struggling to meet revenue expectations in the public market.
• 🥅 Going public is about building a durable business and extending the brand platform, not just the end goal of a company.
• 🛰️ The IPO process involves telling a technical story to a non-technical audience and refining the value proposition.
• 🧑‍🏭 External factors, such as market conditions and political environment, can impact the performance of IPOs.
• 👨‍💼 It is important to maintain a long-term perspective and focus on the fundamentals of the business model.
• 🖐️ Culture and values play a crucial role in attracting and retaining employees during and after the IPO process.
• 🧑‍💻 The market potential for tech companies is still in its early stages, with significant growth opportunities ahead.

Questions & Answers

Q: Why did some companies struggle to meet revenue expectations after going public?

Some companies that were previously valued on revenue multiples in the private market failed to translate those valuations into the public market. This could be due to a variety of factors such as differences in pricing and market conditions.

Q: How should companies approach the IPO process?

Companies should view the IPO as the beginning of a long journey and focus on building a durable business. This involves understanding the business, having the right leadership team, and preparing for the externalities of the market.

Q: What are the benefits of going public?

Going public helps to demonstrate the viability and longevity of a business to large enterprise customers. It also provides an opportunity to extend the brand platform and reach a wider audience.

Q: How should companies balance optimism with rigor when preparing to go public?

Companies should maintain optimism about the market potential but also have a high degree of rigor in understanding the business and its fundamentals. It is important to manage the gap between optimism and reality and ensure that the business model is strong.

Summary & Key Takeaways

• The IPO market in 2019 had mixed results, with some companies failing to meet revenue expectations in the public market, while others with solid business models performed well.

• Going public should be seen as the start of a long-term strategy, not the end goal. It is about building a durable company and extending the brand platform.

• The IPO process involves telling a technical story to a non-technical audience and refining the value proposition. It requires understanding the business, building a strong leadership team, and preparing for the externalities of the market.