Private versus Public Company Tradeoffs: Building Credibility

Dominic Orr, CEO of Aruba Networks, describes the tradeoffs for an entrepreneurial company between being private or public. Orr argues that being public offers a significant benefit for an entrepreneurial company because it confers credibility and legitimacy which can aid the startup in selling to larger organizations. Of course, these benefits must be weighed against the costs and limitations imposed by being a public company.