WEBVTT

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Tech companies can think of an
IPO as being like a graduation

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ceremony, the beginning of a new
chapter, but also the result of

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a lot of hard work in the past.

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If the IPO journey seems
overwhelming, remember that

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roughly 90% of tech companies
that embark on the process

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ultimately succeed in going
public, and more than 60% of

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these newly listed companies see
positive share price

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performances in the first six
months after their IPO.

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So how can tech companies
prepare the groundwork for a

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successful IPO? First,

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as with almost all IPOs, the way
to build trust and confidence

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with investors is by having
experienced leadership team in

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place and build a strong
business plan and equity story.

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Having the right anchor or
cornerstone investors can also

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be helpful and send a quality
signal

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pre- or during the IPO,

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plus anchor [unintelligible].

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Make sure that you have all
operational functions and

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processes that a public company
needs, including IT reporting

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processes, ad hoc capabilities,
governance structures, and

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investor relations team,

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of course.

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Then craft a compelling equity
story that describes the market

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opportunity, what sets the
company really apart and gives

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it unique competitive advantage,
and how the proceeds of the IPO

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will be used to finance growth
and create value.

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Take the time to get the equity
story right, since this will

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underpin the other IPO
materials, including roadshow

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materials and the IPO prospectus
almost as a single source of

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truth. For young tech startups
in particular, potential IPO

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investors would typically want
to see evidence of revenue

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growth and growth potential, as
well as a clear path to future

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profitability.

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Make sure to substantiate equity
story claims with appropriate

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proof points.

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For biotech firms, that
typically means highlighting the

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progress and success in your
clinical approval phases.

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For tech companies, it would
include demonstrating a minimum

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viable product and its road to
market.

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For platform companies, drill
down on unit economics and

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scalability.

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And for technological
disruptors, it's key to showcase

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the business model innovation
and what it means for the

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incumbents. By studying hard and
doing the right homework ahead

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of your graduation,

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tech startups can change the
odds of their own IPO success.