With the proliferation of open source components, now estimated by Gartner in its 2019 Software Composition Analysis Report to account for up to 90% of every piece of software, OSS license management inherently redefines the scope of the risk companies must evaluate when considering an IPO, ranging from license compliance to IP infringement and vulnerability management.
In order to remove any friction from an IPO, every soon-to-be-public company must be prepared to do a thorough and speedy audit and deliver comprehensive reports and documentation on their open source license compliance and vulnerability remediation.
So we’ve put together seven straightforward steps to follow for IPO due diligence. By focusing on the full lifecycle of the software and the sync up between the company, investors, and customers — from confidentiality to roadshow — these seven steps not only help unblock any upcoming IPO, but also remove friction and risk from downstream activity.
In the first eight months of 2020, the IPO stock index is up 67%, compared to less than a 11% rise for the S&P 500.