Later stage things are , the potential IPO is a benefit not deterrent. Recruiters and hiring managers will hint at potential IPO being not far off as an incentive to join. It minimizes risk, they do same for potential target’s founders like Neon here .
This is better than earlier stage startups , while you get far better multiples , it is also quite possible that you are let go somewhere into the cycle without the money to vest the options for tax reasons and there is short vesting period on exit.
For this reason companies these days offer 5/10 yr post leaving as a more favorable offer
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For founders it is gives them a shorter window to a exit than on their own, and in revenue light and tech heavy startup like neon (compared to databricks) the value risk is reduced because stock they get in acquisition is based on real revenue and growth not early stage product traction as neon would be today .
They also have some cash component which is usually enough to buy core things in most founders look at like buying a house in few million range or closing mortgages or invest in few early stage projects directly or through funds
No, basically it is a buy back of employee options and stock .
Many companies raise money only to give liquidity to founders / employees and some early investors even if they don’t money for operations at all.
While Databricks is large , there are much bigger companies which would have IPOed at smaller sizes in the past which are delaying (may never do) today. Stripe and SpaceX are the biggest examples both have healthy positive cash flows but don’t feel the value of going public . Buying back shares and options is the only route if you don’t have IPO plans if you want to keep early stage employees happy
For someone looking to join the company, I cannot imagine IPO to be a motivation anymore.