For those that own stock or options earned and vested, it's a weighty validation about the value of that asset. Assuming the there is a core of early programmers that collectively own 5-15% of the stock but are not involved in the financing side of the business, I am sure they feel differently following this investment/valuation. A 0.1% stake is a big deal now.
IPOs of this decade in tech seem to be a different beast. Much bigger. Companies seem to be successfully raising large (+100m+) sums without going to pubic markets.
Understanding the implications of this is beyond my pay grade, but I imagine there are some complex relationships with early employee and investors. IPOs allow stockholders to cash out and the company itself to raise capital. Companies have an alternative way of raising capital which many now prefer. I imagine that all demand for their stock from later stage investors can be channeled into to company's coffers this way without dilution by stockholders.
Either way for employees that have some tenure at Square, being now valued at $6bn is much better than being valued at $600m or $60m.
IPOs of this decade in tech seem to be a different beast. Much bigger. Companies seem to be successfully raising large (+100m+) sums without going to pubic markets.
Understanding the implications of this is beyond my pay grade, but I imagine there are some complex relationships with early employee and investors. IPOs allow stockholders to cash out and the company itself to raise capital. Companies have an alternative way of raising capital which many now prefer. I imagine that all demand for their stock from later stage investors can be channeled into to company's coffers this way without dilution by stockholders.
Either way for employees that have some tenure at Square, being now valued at $6bn is much better than being valued at $600m or $60m.