Here’s why Australian tech startups should consider following the global trend of staying private for longer
Dirk Steller, founder of fintech venture capital fund Seed Space, says listing publicly can still add value, but it’s important to get the timing right.
As Australia’s fintech industry develops, successful startups will increasingly need to consider how they access capital markets to finance the next phase of growth.
The ASX boards now include a number of fintech companies that grew successfully from startups to listed entities – and many of them are performing well.
But while the ASX is viewed as the primary point of exit for most local startups, Steller says rushing the process can sometimes be counter-productive.
Speaking with Stockhead, he said it’s often more beneficial to build out and establish the business model with assistance from a network of strategic investors, without the spotlight of a public listing.
“One of my concerns about early-stage listings is that early investment really is the space for professional investors,” Steller says.
“And the reason for that is early stage companies come with significant risk, with complex operations, and it takes professional experience and access to market networks for investors to be able to take meaningful decisions.”
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