Last night, my partners at GGV Capital and I hosted our Q2 CEO Dinner in SF. We had a great group of 30 CEOs join us. Keith Rabois, Bruce Felt and Ted Wang also did a great job as panelists discussing the financing, M&A and IPO landscape. I’ve outlined some of the compelling insights that came from the lively discussion among Keith, Bruce, Ted and the CEOs in attendance below. Thanks to all who attended and joined the conversation.
- Don’t go public until you’re ready. Being ready isn’t about knowing what next quarter is going to look like. Rather, its about understanding the outlook for the next few years.
- Once you’re ready, go public. Most of the commonly voiced concerns over being public are overblown, and the positives of being public outweigh the negatives. (See more from Keith Rabois on the real reasons companies don’t go public and my former blog on the $100M revenue myth.)
- In terms of hiring, think of three general criteria – values, cultural fit and skill set. Never compromise on values. If someone has great skills, especially if they’re unique, you can consider compromising on personality/culture, especially if its employee number 150 vs employee number 15.
- Secondary sales as part of up round venture financings are here to stay. Expect it to become very common for a small portion of secondary to adjoin financing rounds for companies where values are going up.
- Liquidity for existing employees can create problems however. If people are only in it for the money, they’re probably not the right employees.
- Take care of your employees. It can’t all be about the monetary compensation. Showing them you care can really help with morale and add momentum to recruiting.
- If you’re going to sell your company, be prepared to see your product trajectory flatten or even stagnate.
- If you’re going to sell your company, go for the highest price. Price will always come down once an LOI is signed.
- Don’t hide the challenges you’re having when in an M&A or financing discussion.
- The best companies are disciplined enough to focus on what is important, not on what is urgent. Recruiting in particular is key to a company’s success, but it reduces efficiency in the short run. You have to be ready for this and stay focused on prioritizing building out a great team.