That's generally a good way of thinking about whether to hold an investment, but don't forget about capital gains taxes and state taxes. For example, if you expect to move residency from CA to WA in a year, that alone could be a big bump in your expected cash proceeds and a reason to hold on.

A single data point, but a company I held equity in went public 4 months after a liquidity event in which shareholders were allowed to participate. The IPO went at ~50% above the price of the private transaction. If I were you, I wouldn't sell all of my shares now, especially if you think there's a good chance the company will go public very soon. Selling some fraction makes sense, as others have said--take some money off the table, depending on how much of your total net worth is in this equity stake.

As you might have noticed, the tech sector is in very high demand by investors right now; I wouldn't at all be surprised if VCs and anyone within the company is rushing to IPO, and it doesn't surprise me that investors would want to buy some extra shares at pre-IPO prices. This can all come crumbling down, as some stipulate on HN and elsewhere. Just to mention it as an option: you could partially reduce the risk of holding all or fraction of your shares by shorting a small amount QQQ. If the IPO gets postponed/canceled, it will probably be correlated with the tech sector dropping, so you'll make a modest amount of money on that.

This assumes OP gets a fair price for their stock. Often that doesn't happen on private markets, especially if the company doesn't provide enough information to allow outsiders to make an informed decision