The process of going public entails considerable costs, not just financial, but relating to the demands on the attention of management. Typically, a private company gets venture capital financing and then goes public, not the reverse. Investors were betting his would be one of the winners. If his market wasn't on a fast-growth curve, it's unlikely he could have gone public. Garai says that for a company to go public, it should be able to convincingly claim at least a 30 percent compound annual growth rate.
Predictability is important.
If your company's performance is erratic, if your earnings bounce up and down more than a basketball in the hands of Michael Jordan, if you've not really identified your market-find another source of investment capital. Wall Street hates surprises. But the stock market wants to see you predictable on a quarterly basis. If you are very small, you probably cannot go public. For most companies, their greatest asset is management.