Jason M. Lemkin argues that companies typically need about $500 million in revenue, growing ~30%, to go public—because smaller companies (e.g., at $200M) rarely sustain the necessary growth rates. He notes public markets’ limited analyst attention but emphasizes hitting ~30% growth at $500M as the practical threshold.
$500 million
~30% growth
about 18 months
Everyone on the cap table can optimize what's best for them. And so I don't know. But when the CEOs in the letter to the team says we're going to go public instead, you got to do it in the next 18 months or so. Can I just jump in there and ask? You mentioned. I don't. I think you need 500 million in revenue to go public. That is against what bill Gurley, Brad Gerstner say before. Why do you believe you need 500 million? Just so I understand. Okay. So let me be nuanced. The public market folks will say you can't get analyst attention and the markets are too thin and blah, blah. I'm sure that that's all true. Right. I, I think the real reason is I'm, I'm simple. I'm using too much shorthand. I think you need 500 million growing 30%. The problem is everyone at 200 million for the most part is not growing the 50 to 60%. You need to land at 30% at 500 million. Right. And so absolutely.
