Back to the complete issue
Wednesday, 25 September 2019

Timing is key to IPO success, says Box CEO

The challenges inherent in launching an IPO can make or break a company, says Box co-founder and CEO Aaron Levie in a conversation with the Wall Street Journal (watch, runtime: 02:41). Timing is one key determinant of future success: IPO too early and your business model might not be established, but leave it too late and you might find your growth ceiling has already been reached. Box struck a good balance, Levie believes, by launching an IPO once it had reached over USD 100 mn in revenue, having proven its model and operations, and shown that it could replicate scaling and customer outreach. This meant making some tough decisions, however, including pushing the initial date of the IPO to get the business into a better financial position, and turning down a lucrative early acquisition offer that would have limited its growth. Going public changes a business, and the shift from having a handful of investors to having thousands (or even hundreds of thousands) does not come naturally to any organization. And as a company grows, it will face decisions that test the vision and conviction of its team members.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.