An influential person in the tech sector, Parker Harris is well-known for his work on BeyondTrust and Salesforce. One of his well-known quotes discusses the factors that influence businesses' decisions to go public. To put it simply, he says that companies choose to go public in part so that other people will perceive them as dedicated participants in their industry.

Imagine a fledgling company walking into a playground full of older children. This new kid may decide to wear a bright badge or do something equally eye-catching to ensure that everyone notices it and knows it is someone who intends to stay for the long haul. In a similar vein, firms that go public may be viewed as donning this badge, demonstrating their resolve to stay in business.

These companies' decision to go public communicates stability and dedication to stakeholders, clients, rivals, and even staff members. It's similar to saying, "We’re not just passing through; we’ve built ourselves a home in this neighborhood." This tactic can assist in securing the company's position in cutthroat industries and enhancing its reputation.

Parker Harris's remark captures a more general reality about how long businesses last: in order to stay relevant and powerful over time, businesses frequently need to actively communicate their intentions. These businesses take a significant step toward becoming long-lasting participants in their industries by deciding to go public.