As IPO looms, Square adds Ruth Simmons to its board

As president of Brown University, Simmons was the first black president of an Ivy League school

Big things are happening at Square right now. As its founder and CEO tends to another company at the moment, the financial services and payments company, which has apparently already having possibly filed to go public, is also strengthening its board of directors.

Square announced on Tuesday that Ruth Simmons will be joining its Board of Directors. 

Simmons is the former president of Brown University, elected in 2000 as the first black president of an Ivy League institution until 2012. Prior to her time at Brown, she served as the President of Smith College from  from 1995 to 2000, where she established the first engineering program at an American women's college. 

She also has plenty of experience being on boards, as she currently serves on the board of directors of Texas Instruments, Chrysler, and Mondelez, as well as a number of non-profit boards. She previously sat on the board of directors at Goldman Sachs.

“In my experience, the best companies draw their strength from their ideals and their customers,” Simmons said in a statement. “Square puts its sellers first, empowering them with tools that allow them to participate in and help drive the economy. I look forward to helping the team advance this important goal.”

Square has been often-rumored to be heading toward an IPO. The company was said to entertaining the thought of going public in 2014. The rumors were making their rounds—supposedly of talks with banks, like Goldman Sachs and Morgan Stanley. And Square hired former Salesforce.com exec Sarah Friar as its new CFO last year.

Dorsey, however, scuttled those plans last February due to problems with revenue. Namely, the company is not profitable.

Now, however, reports have come out that it has filed, though confidentially, using a provision of the JOBS Act that allows companies to file, while, essentially, not needing to tell anyone know about it. It allows companies to test the water and potentially decide to withdraw their proposal without public scrutiny. It's a technique that other big companies have used before, including Twitter, GrubHub and Box.

A Square IPO would do two things. First, it would give a shot in the arm to what has, so far, been a fairly lackluster year for the IPO market. There have only been 19 tech IPOS this year, compared to over 40 at this point last year. 

Secondly, it would be the first unicorn to go public in 2015. The company has raised at least $590 million in venture funding, including a $150 million round in October, which valued it at $6 billion. Huge valuations, and a low IPO count, have made investors skittish, so a Square IPO might help remedy some of that fear. 

While Simmons is not the only woman who will be on the board at Square, which already includes Kleiner Perkins partner Mary Meeker, nor will she be the only African America, as the board already includes basketball legend Earvin “Magic” Johnson, she will still be bringing a unique perspective to the company, one that will prove valuable as Square prepares for its public offering.

“Ruth has inspired generations of young people to follow their dreams, break down any barriers that stand in their way, and make an impact in their communities,” Jack Dorsey, CEO of Square, said in a statement. “I know she will bring that same passion to Square on behalf of our sellers, and I am honored she will be joining our board.”

Square’s Board of Directors also includes Dorsey, Roelof Botha, Vinod Khosla, Jim McKelvey, Larry Summers, and David Viniar.

(Image source: brown.edu)