1/ We are in inning 2-3 of the valuation reset in VC backed tech cos. For cos w/ plenty of $ (2+ years of runway) that don’t need to raise, the reset may feel less urgent + will take time to play out. But - long term planning around capital structure is still very (!) important.

2/ Having a strong POV on how you will finance the co - perhaps independent of your current investors - is very important. There are many companies of scale that “weren’t ready” to IPO in ‘21 + were planning on ‘22. They are now facing a very uncertain fundraising environment.

3/ And unfortunately many of the investors who encouraged the company to take their $ at historically high valuations can no longer - or won’t - write checks to fund the business. It’s an ugly situation for the company to be in.

4/ It’s not fun to be a newly public company and watch your stock drop 75%. It’s painful. 🤕 But - most companies raised a healthy amount of $ in their IPOs and thus do not face systemic risk of their business running out of $. The stock price will take care of itself over time.

5/ So? Very basic advice. Even if you have 2+ years of cash, plan for long term viability. If you’re at scale, get an IPO plan in place. Many companies say “we’ll go public when we’re ready.” Flip that around and say “Let’s get ready to go public.” It takes time, focus, and $.

6/ Even if you don’t think the valuation of the business will be higher than that crazy round you raised in ‘21, you have to have a plan. As the saying goes, “hope is not a plan…” 🤞

7/ Just to spice it up a bit, the controversial part: some of your existing investors may not like this plan. No one wants to see a company IPO at a valuation lower than what they paid. It’s human nature. But - hoping they’ll write a check 18 mos down the road isn’t a plan…🧐