eventually blocked by the ASX<\/a>, reignited a debate about early-stage tech companies using the public markets as a funding route, despite having low revenue and no established business model.<\/p>\nDyson says a lot of founders don\u2019t understand the challenges that come with being a publicly listed company.<\/p>\n
\u201cIt\u2019s really important that entrepreneurs fully understand what they\u2019re taking on board when they go to the public market,\u201d he says.<\/p>\n
\u201cSome are a bit na\u00efve about the process. We tell entrepreneurs to see listing as not the end of a journey, but the start of a new journey. Many of them are uninformed about how life changes under public ownership and the public microscope.<\/p>\n
\u201cTo survive it\u2019s really important that they have a proven, sustainable business model and proof points of success.\u201d<\/p>\n
He says many Australian startups are seeking to complete an IPO because they are struggling to raise private funding.<\/p>\n
\u201cThe biggest takeaway is that it really highlights the challenges that many companies face in raising capital in Australia,\u201d Dyson says.<\/p>\n
\u201cMany companies feel as though they\u2019re pressure to look at a listing as a real alternative because they have no other option to raise entrepreneurial capital in Australia.<\/p>\n
\u201cThe industry is relatively small and many see a public listing as almost he best of a number of bad options.\u201d<\/p>\n
In terms of advice for founders preparing to undertake an IPO, Dyson says there\u2019s no substitute for speaking to those that have been there before.<\/p>\n
\u201cGo in with your eyes open,\u201d he says.<\/p>\n
\u201cWe encourage founders to speak to other companies that have gone through the process rather than just advisors or brokers.\u201d<\/p>\n
Follow StartupSmart on<\/em> Facebook,<\/em> Twitter and <\/em>LinkedIn<\/em>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Startup founders need to be fully informed about the rigours of being a public company and should look into other<\/p>\n","protected":false},"author":2,"featured_media":60279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/42530"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=42530"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/42530\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/60279"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=42530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=42530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=42530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}