Shreya Murthy

And so before 2012, the S-1 became public early in the process, which was great for journalists who wanted to report on IPOs.

It wasn't really that beneficial to very many other people, but it raised the stakes for companies because if anything was off, it could result in a botched IPO,

which would be damaging for morale.

You hear that your company filed publicly, and immediately something comes up, and you can't fix it, so then you have to pull back, and it's seen as damaging.

Seen as weakness.

No one wants to be running a company that publicly failed to IPO.

And so, in 2012, the JOBS Act passed.

And they created a new class of company with some relaxed filing requirements.

These are called emerging growth companies.

It's defined by the SEC.

They're called EGCs.

And EGCs were defined as any company with less than a billion in revenue.

Later, it was inflation adjusted to be 1.235 billion.

But that doesn't really matter, though, because in 2017, staff at the SEC under Trump won.

expanded the confidential filing flow to include all issuers, not just EGCs.

So anyone, no matter how much your revenue was, you could go through this process.

And so the Jobs Act was driven by Republicans, but broadly supported, and the 2017 change happened under Trump One, but again, it didn't face strong opposition.

So private market investors like IPOs for liquidity.

VCs love to come on the show and do a victory lap when they take a company public, and it's great to return capital to LPs.

And then on the other side, public market investors like access to more names, so it's sort of win-win.