Twilio Raises A $70M Series D As They Consider An IPO (opens in new tab)

This makes no sense. You can be profitable, and still would like to raise money from the public stock market to pursue activities that are more expensive than what your currently profitability can sustain, like expanding the business globally, or enter in new markets, or build new products. It's about business and the business it's about money, so there's nothing else that an IPO provides except immediate liquidity. The side effects are bad, like sustaining lots of bureaucracy because of the heavily regulated public stock market, or exposing your company.

An IPO creates a liquid market for existing shareholders (management, private equity) to cash out. Seriously. There are cheaper forms of financing if all they wanted was to expand operations.

indirect marketing. press coverage. easier to recruit people based on equity compensation (liquid market for shares). 'legitimacy' in the eyes of some potential customers. connected into investment banking world for future transactions (debt issue, equity issue, M&A, etc).

Aren't IPOing companies almost universally profitable?

Telco is a commodity. You want to raise as much money as possible and you want to drive your margins down as it makes competition impossible.

Thank you very much for that. Still much work ahead - glad you are with us for it.

Thank you. Hope to see you there - we've got some serious fun planned.

Thanks so much gales. You are right - there is a whole lot of work ahead.

Thanks partner. Lot of work before we get there - looking forward to the next leg of the mountain.