Pros and cons of being a private company
Privately held companies offer both advantages and disadvantages compared to public companies.
The biggest advantage to privately held companies is that they require much less paperwork. Publicly traded companies have to file quarterly reports and annual reports with the Securities and Exchange Commission (SEC) and have to file updates when material news happens. Complying with those rules can be expensive and time-consuming. Similarly, the process of going public through an initial public offering (IPO) is challenging and costly.
By contrast, one disadvantage that privately held companies have vs. public ones is that it's harder to raise cash. Publicly traded companies make their financial statements readily available, making it easier for them to tap a creditor for a loan. They can simply raise money by selling more shares.
Some companies, however, will choose to remain private to avoid the hassles associated with being publicly traded and because they don't need to raise the money.
Finally, employees and other investors in a start-up likely want the company to go public because it makes it easy for them to cash out their shares, a common reason for going public.