Mid-to-late stage companies eyeing an IPO often focus on the finish line, but what about the journey to get there? After leading three companies through IPOs, Stef Layne, VP of Treasury, Payroll, and GTM Compensation at Klaviyo, has hard-earned insights on how treasurers can prepare.
In a recent Fintech Corner podcast episode, Stef shared her best IPO tips for treasurers, drawing on her personal experiences navigating the preparation process and unforeseen crisis events such as the SVB collapse. Her story is empowering and educational, showing exactly what treasury teams should do before and after ringing that bell.
Below, we distill Stef’s advice into actionable guidance, backed by data and real examples, to help treasury leaders set their company up for IPO success.
5 Tips for Treasurers Before IPO
1. Fortify Controls Early and Plan Ahead
Stef’s first piece of advice for any aspiring IPO is simple: start preparing early.
Klaviyo brought Stef on board well before their IPO, giving her team “ample time to build the team [and] set up the infrastructure” ahead of a big cash influx.
An early start allowed treasury to invest wisely, diversify cash holdings, and fine-tune cash flow forecasts long before going public. This kind of foresight is invaluable – in fact, consulting firms recommend beginning Sarbanes-Oxley (SOX) compliance prep 12–24 months before an IPO.
“I’m going to give you the most important [tip], but not the most fun: setting up the SOX controls and processes to feel confident in your numbers. It’s a necessary evil. Once you are public, the rigor around your financials quadruples – being well prepared for that is super important… Thinking about SOX as an afterthought is going to cause a lot of grief in the future.” – Stef Layne
Stef emphasizes that robust internal controls are non-negotiable for a smooth IPO. Many fast-growing companies underestimate this; since 2016, an average of 43% of pre-IPO companies have disclosed at least one material weakness in controls before going public.
To avoid joining that statistic, treasurers should champion strong controls and audit-ready processes early on. That means collaborating with accounting to implement SOX frameworks, tightening reporting accuracy, and even “changing the culture” of the finance team from startup scrappiness to public-company polish. Lay the groundwork now – it will pay dividends when regulators and investors scrutinize your books.
Watch: In this podcast clip, Stef recounts how Klaviyo set up SOX controls well ahead of their IPO to ensure there were no surprises come audit time.
2. Don’t Underestimate Post-IPO Equity Management
An IPO isn’t the end of the journey. For treasurers, it’s the start of new challenges, especially around equity management.
Stef admits one of her proudest achievements across three IPOs was navigating the complex equity events that occur once the company is public.
In tech companies, years of accrued RSUs (restricted stock units) often “all become real” at IPO, triggering tax withholdings, employee trading windows, and major cash outflow.
“They’re really nothing until IPO, but as soon as they become real, there’s tax implications, there’s cash implications… What’s the stock price going to be on IPO and three months later?” she explains.
Equity events can catch treasurers off guard. Here’s how Stef’s team prepared:
- Modeled liquidity scenarios for different vesting timelines
- Collaborated closely with HR and legal to align cash and tax timing
- Created buffers in their forecasts for worst-case payout scenarios
One huge consideration is the cash needed to cover employee tax withholdings when equity vests. Often, the dollar value of awards vesting at IPO is significant, resulting in substantial tax payments due the next day.
Planning ahead is critical. Ensure the company has enough liquidity set aside to meet payroll tax obligations and avoid scrambling at the last minute.
Stef’s advice: Treasurers at pre-IPO firms should “start thinking about that equity” early, because it can sneak up on you. This may involve modeling different stock price scenarios, coordinating with HR on an Employee Stock Purchase Plan (ESPP), and briefing executives on potential dilution or cash requirements.
By leaning into equity planning (even though it’s not a traditional treasury domain), Stef was able to help her last two companies successfully manage post-IPO equity hurdles, from handling massive RSU vestings to evaluating ESPP programs.
The lesson? Treat equity events as a core part of IPO planning. Treasury can add tremendous value by ensuring no surprises when those shares hit the market.
3. Stay Agile and Prepare for Crises
Even with the best-laid plans, unexpected crises can and will occur, and often at the worst time.
For Stef, the Silicon Valley Bank collapse in March 2023 (just months before Klaviyo’s IPO) was a trial by fire. When early rumors of SVB’s instability surfaced, she had to act immediately to protect the company’s cash.
“I had to move quickly, stealthily, and with conviction to reduce our cash exposure from 46% to 3% on the day of the rumor.” – Stef Layne
With no time to convene a committee or call the board, she executed a game-day decision to pull millions out of SVB, informing leadership as she went. It was a gutsy move, but it proved to be the right one.
This story highlights the critical link between resilience and readiness. For treasurers, this means:
- Scenario planning for black swan events (bank runs, FX shocks)
- Establishing thresholds for cash moves—so you don’t hesitate when it counts
- Empowering your team with the right tools to make decisions confidently
Likewise, always know your exposure: Stef immediately tallied Klaviyo’s percentage of cash at SVB and her alternatives for moving funds. Her story also highlights how treasury teams must sometimes make swift solo decisions for the company’s good. “There is no time to waver… you just have to make the decision and go,” Stef says of that critical moment.
Stef notes that in corporate environments, we’re used to endless stakeholder consultations, but in a crisis, the treasurer often has to “be the hero” and act solo.
Also, lean on your professional network. Treasury is a small, tight-knit community, and during the SVB scare, Stef’s phone was, as she stated, “blowing up” with peers asking for advice and sharing information.
In volatile times, those relationships can be a lifeline. Above all, stay calm and remember Stef’s take: “It’s not brain surgery – solve the problem, pivot on the fly, and go with conviction.”
Watch: Stef describes in detail how she navigated the SVB bank run and the decision to pull Klaviyo’s funds in hours.
4. Let Tech Take You Further
Another theme in Stef’s playbook is the power of automation and real-time data for treasury. As companies grow and prepare to go public, the scale and complexity of cash operations explode – yet many treasury teams are stuck with manual processes. In one survey, 64% of treasurers said achieving visibility into global cash flow and risk is their biggest challenge.
Stef gets it. She also knows tech can help.
“We don’t get a lot of technology in treasury… we’re just super jazzed to finally implement a modern platform.”
At Klaviyo, Stef’s team is rolling out Trovata’s cash management platform to aggregate all global banking info into one spot, giving real-time visibility across entities.
Her team turned to Trovata to:
- Aggregate multibank data into a single platform
- Gain daily cash visibility across all global entities
- Automate manual cash reporting and forecasting workflows
Getting budget for new treasury tech wasn’t easy – Stef jokes that CFOs often think of treasury as “Scrooge McDuck swimming in gold coins” but never holding a budget for tools.
Her advice: persistently make the business case for the tools you want to learn and use. Show how automation can save time, reduce errors, and improve decision-making.
“Don’t take no for an answer. Keep pushing,” she urges. The payoff’s worth it.
For treasurers prepping an IPO, technology can be a secret weapon. Real-time cash dashboards, automated forecasting, and API connections to banks all free up your team to focus on strategic issues (like those critical IPO prep tasks) instead of firefighting spreadsheets.
Automation also strengthens controls and reduces operational risk – an important factor when everything is under the IPO microscope. And it’s data-driven: with better data, you can forecast more accurately and respond faster.
It’s no wonder treasurers spend more time on cash forecasting than on any other activity, and 65% expect AI and analytics to improve forecast accuracy soon. Embracing the right tools now can give your company a head start as a public entity.
As Stef notes, treasury innovation often lags behind other areas, so securing budget for a modern treasury management system (TMS) is a big win. “Hopefully that’ll be the tool on the cash side that gives us visibility in one spot,” she says of adopting automation with Trovata.
Greater visibility and control mean fewer surprises – and no more last-minute scrambles in Excel when the CFO asks for an updated cash forecast.
Recommended: AI in Cash Forecasting: Can Machine Learning Replace Human Expertise?
5. Lead Through Collaboration and Flexibility
Stef Layne’s career proves that a Treasurer’s influence extends far beyond just cash management. To successfully shepherd a company through an IPO, treasurers must wear many hats and collaborate across the organization.
Throughout her career and especially during the run-up to Klaviyo’s IPO, Stef became a “Jill of Many Trades” by helping craft investor presentations, running equity and tax analyses, and acting as an extra set of eyes on SEC filings.
“Folks building the 10-K sometimes just need somebody to read it like they don’t know what’s going on and provide feedback,” she says, highlighting Treasury’s ability to offer a fresh perspective. By leaning into areas outside the traditional treasury lane, you not only lighten the load on other teams but also ensure critical details don’t slip through the cracks.
Stef advises fellow Treasurers to actively volunteer for cross-functional work, especially if you join a company late in the IPO timeline.
“Be prepared to lean in and offer a hand where you haven’t been before. You want to be seen as that go-to person to jump in when the team needs help,” she says.
During her first two IPOs, Stef often had to play catch-up, so she focused on getting the treasury foundation set (diverse partners, credit facilities lined up, cash flow planning) and then made herself available to assist wherever needed. This kind of flexibility and teamwork is crucial. IPOs are all-hands-on-deck affairs; no task is too small or outside your job description if it helps achieve the end goal.
Finally, don’t forget to prepare your own team for life after the IPO. Once public, the pace and scrutiny can intensify overnight.
Stef made a point to get her “money team” at Klaviyo ready for a new environment where “everything is being audited and reviewed”, rather than the freewheeling startup days. That meant training, setting new expectations, and instilling a culture of accuracy and accountability.
It also means taking care of your talent: Treasury teams often run lean, and 60% of finance leaders report trouble hiring skilled treasury professionals.
Stef’s approach as a leader is to keep her team motivated, even drawing on her experience as a fitness coach to build a strong team dynamic.
In short, great Treasurers lead with both head and heart – they collaborate, adapt, and inspire their teams to reach that IPO finish line together.
Reach the Finish Line Together
From establishing airtight controls to managing equity windfalls, from crisis-proofing your cash to embracing automation, Stef Layne’s IPO lessons provide a road map for any treasury professional preparing to go public. Her experience underscores that successful IPOs are about building a resilient, well-oiled finance operation that can thrive under new pressures. Treasurers who follow these tips will be well-positioned to navigate the transition from private to public company with confidence.
Learn more from Stef’s journey. Listen to the full podcast episode for deeper insights and stories from Klaviyo’s IPO adventure.
