Joining billion dollar club is a decision to go public

The private financing market is favorable.  So much so that we now have Facebook pages set up to count and follow the unicorns – venture-backed companies that have raised capital at valuations above a billion dollars.  This is not a bad thing.  It means the private market has the depth to finance a company on attractive terms for as long as the Board decides the company should stay private.

However, the expansion of available private company valuations has implications a Board and a CEO should consider when pricing the next round.  A big step up in valuation means the collective team – leadership, employees and existing investors – are signing up to produce a much bigger outcome.

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