We last updated our IPO Guide in 2016. In the three years since then, we have witnessed the growth in revenue and market capitalization of late-stage private companies with valuations over $1 billion, which have come to be known as “unicorns.” Unlike that imaginary medieval animal, unicorns of today have become surprisingly commonplace, as venture and late-stage growth funds aggressively compete to invest the large pools of capital they have raised into high-value, revenue-stage companies.

In this latest edition, we first discuss the period leading up to the decision to proceed with an initial public offering, with a focus on the prerequisites to—and the costs and benefits of—proceeding with an IPO and becoming a public company. Second, we discuss the period beginning with the decision to proceed with the offering and continue through the closing of the sale of the shares to the public. We conclude with a discussion around certain consequences of becoming a public company, including the company’s disclosure obligations, corporate governance requirements, and the trading restrictions and reporting obligations applicable to the company and its directors, executive officers, and other affiliates.

The IPO should not be viewed as an end point or ultimate goal; rather, it is one step in the growth and maturation of a business enterprise. This booklet is intended to provide a high-level perspective on this exciting process and the key issues that impact it.

Click here to read the IPO Guide.