{"id":42530,"date":"2023-10-20T15:21:52","date_gmt":"2023-10-20T15:21:52","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/starfish-ventures-founder-john-dyson-on-what-startups-need-to-know-about-going-public-in-the-wake-of-guveras-disastrous-ipo-startupsmart\/"},"modified":"2023-10-20T15:21:52","modified_gmt":"2023-10-20T15:21:52","slug":"starfish-ventures-founder-john-dyson-on-what-startups-need-to-know-about-going-public-in-the-wake-of-guveras-disastrous-ipo-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/starfish-ventures-founder-john-dyson-on-what-startups-need-to-know-about-going-public-in-the-wake-of-guveras-disastrous-ipo-startupsmart\/","title":{"rendered":"Starfish Ventures founder John Dyson on what startups need to know about going public in the wake of Guvera’s disastrous IPO – StartupSmart"},"content":{"rendered":"
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Startup founders need to be fully informed about the rigours of being a public company and should look into other options before attempting an IPO, Starfish Ventures co-founder John Dyson says.<\/p>\n

In the wake of Guvera\u2019s controversial failed IPO, the public markets are increasingly volatile for early-stage tech companies, and many startups should attempt to stay private for as long as possible, he says.<\/p>\n

\u201cWe encourage companies to stay private as long as they can, assuming they can raise funding,\u201d Dyson tells StartupSmart<\/em>.<\/p>\n

\u201cYou don\u2019t want to go through the listing process just to go through the listing process. You need real justification to become public.\u201d<\/p>\n

Guvera\u2019s listing, which was 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>\n

Dyson 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}]}}