Contrary to the prevailing wisdom of staying private as long as possible, VC Keith Rabois counsels his portfolio companies to pursue an IPO once they hit ~$50 million in predictable revenue. He believes the benefits of being public outweigh the costs much earlier than most founders think.

Discord filed for an IPO, but its current valuation of $7-8B is significantly lower than its 2021 peak of $15B and the $10-12B Microsoft acquisition offer it rejected. This illustrates the market's impact on high-flying private valuations and the risk of turning down acquisitions.

In the current market, companies prioritize liquidity and public market access over protecting previous private valuations. A lower IPO price is no longer seen as a failure but as a necessary market correction to move forward and ensure survival.

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.

The public markets offer a unique advantage over staying private indefinitely: discipline during transitions. Daily stock prices and investor scrutiny force management to confront hard truths and balance growth, profitability, and innovation. As seen with Netflix's pivot to streaming, this pressure is crucial for realigning employee incentives and making tough capital decisions during strategic shifts.

The most lucrative exit for a startup is often not an IPO, but an M&A deal within an oligopolistic industry. When 3-4 major players exist, they can be forced into an irrational bidding war driven by the fear of a competitor acquiring the asset, leading to outcomes that are even better than going public.

Venture capitalist Bruce Booth explains that bankers, lawyers, audit firms, and VCs all have strong financial incentives for a company to go public. This creates systemic pressure that may not align with the company's best long-term interests.

Beyond capital access, being a public company offers constant, free marketing. The visibility from quarterly earnings reports, analyst coverage, and media attention can attract acquisition targets, investors, and top talent who might not otherwise have been aware of the company.

Netscope's CEO revealed their IPO was a strategic move for market awareness and credibility, not a necessity for fundraising. As a private company competing against public giants, the IPO provided the visibility needed to get into deals and win proof-of-concept trials, highlighting the IPO's role as a powerful marketing tool.