Below, a continuation of our bibliography of thought-provoking articles on issues related to right-sizing regulation, staying private versus going public, and related topics:
The Unicorn Governance Trap
In her paper, “The Unicorn Governance Trap,” Renee Jones discusses how changes in the start-up and private financing markets have resulted in privately held companies deferring the adoption of more sophisticated corporate governance policies. Whereas, in years past, venture capital may have been the predominant source of capital for these companies, and VCs may have taken an active interest in governance policies, particularly in preparation for IPOs, the rubric has changed. Many companies defer their IPOs for longer than their predecessors. New sources of private capital have emerged and these investors are not interested in taking a role in governance. Jones considers a number of possible approaches to addressing the unicorn governance structures.