Considerations for Valuation and Liquidity Preferences in IPOs

The company's success is dependent on raising more capital, but there are concerns about its valuation. The CEO is aware that the last round of investors may not support an IPO or acquisition unless the company's worth significantly increases. Going public would eliminate liquidity preferences and create arguments among board members. The example of Ren Envelope's IPO is shared, where the final investor had a higher valuation but eventually had to approve the IPO due to lack of alternatives.