Fintechs say high ASX standards are vital
The chief executives of two fintech companies preparing to list on the ASX say the Australian public market remains an attractive funding option for young technology companies despite the botched float of music streaming service Guvera.
ChimpChange, a digital bank in the US, is set to list on the ASX this Thursday, after raising $15 million to help lift its profile to millennial customers in middle America, where it provides low-fee deposit accounts.
Avoka, a software developer working for global banks, has just completed a $16 million fund raising from private investors and is eyeing a listing on the ASX in around 18 months.
The bosses of both companies say the ASX’s decision earlier in June to block Guvera from listing reflects a rigour on forward-looking statements which is important to ensure retail investors understand the risks of investing in young tech companies.
“It is fantastic for Australia that in the ASX we have such a well run and governed market place,” said Phil Copeland, CEO of Avoka, whose software platform is used by banks to speed up signing on new customers over mobiles. “We are looking towards an ASX listing in due course but we are not going to rush.”
Companies like Avoka selling enterprise software to global companies should be placed in a different bucket by investors than consumer plays, he says. “There are fads and trends in the marketplace but we are in a different space, we have real revenue and blue chip customers, which is a very different space to something like Guvera. Businesses with solid products and revenue and delivering value to customers will always be in demand and Australia investors will understand that.”
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