The rationale for an IPO has shifted. Companies can now offer employee liquidity through structured secondaries, a key historical benefit of going public. This allows them to avoid the downsides of being public, namely the impact of daily stock volatility on employee morale and the pressure from short sellers.

Qualtrics intentionally raised capital at valuations up to 40% lower than what they were offered. This cap table management strategy ensured their eventual IPO could still be an up-round even in a shaky market, avoiding the morale-crushing impact of a down-round IPO.

The traditional purpose of an IPO—raising capital for company growth—is obsolete. Today, companies scale using private equity and only go public to allow early investors and insiders to cash out. This means the public market captures significantly less of a company's early, high-growth phase.

Contrary to popular belief, staying private isn't always easier. The administrative burden of managing secondary share sales and controlling who gets on the cap table is a significant headache for CEOs, making an IPO an attractive solution for simplicity and control.

Secondary transactions can be a tool for growth-stage companies to optimize their capitalization table. They can provide liquidity to early-stage investors who need an exit while clearing space for new, larger institutional investors (like sovereign wealth funds) better aligned with the company's long-term future.

While many private founders fear going public, David George of a16z claims he's never met a public CEO who regrets it. Key benefits include easier and often cheaper access to capital compared to private markets, increased transparency, and the discipline it instills. The narrative of public market misery is overblown for most successful companies.

Bending Spoons' CEO Luca Ferrari reveals their IPO was strategically aimed at improving access to debt, not equity. Lenders favor public companies due to their regulatory transparency and clear valuation, making it easier and cheaper to secure the debt that has historically fueled their acquisition-heavy model.

For many large companies today, an IPO's primary purpose has shifted from raising growth capital—which is readily available in private markets—to creating liquidity for early investors and employees. The public offering acts as a valuation marker and an exit opportunity, not a funding necessity.

Contrary to popular belief, an IPO should not be viewed as a liquidity event. Instead, its primary value is in marketing and branding. It signals to the market, customers, and potential employees that the company is stable and "here to stay." The actual liquidity is often constrained by lockups and regulations.