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Founders Forum Global is getting closer! And you can expect many engaging founder discussions to focus on funding and the opportunities within the public markets. We’re delighted to be partnering with the London Stock Exchange at #FFGlobal, where Julia Hoggett, CEO, will speak about a number of new and exciting opportunities for growth-stage companies. The question is - how can tech founders access a deeper pool of investors? We caught up with Julia to find out more. 📰 Read the full article here  https://lnkd.in/eg8-veK9 #CapitalMarkets #UK #London #MainMarket #IPO #RaisingFinance

China’s depressed stock markets and IPO slowdown have sent a chill through the world of private equity (PE) and venture capital (VC) firms. The downturn has spelled trouble for IPO hopefuls and created a rift between them and PE/VC investors that is leading to arbitration or litigation when companies fail to go public. When the promised IPO doesn’t happen, the two sides sometimes try to renegotiate, but the PE/VC firm has the upper hand because of the original bet-on agreement (对赌协议), or valuation-adjustment mechanism. This gives investors the right to adjust valuation of the portfolio company or to redeem their investment, and receive a pre-agreed interest rate on the capital when performance doesn’t meet conditions set, including IPO deadline. Bet-on agreements help mitigate risks and uncertainties that PE/VC investors face when they incentivise company management to improve the performance to help meet IPO requirements. But they also expose startups to a potential financial meltdown because most don’t have the resources to compensate investors by buying back their equity, except to accept a large drop in valuation. The market for IPOs overseas entered a deep freeze in 2021 amid a row between regulators in Washington and Beijing. In 2022, number of Chinese companies newly listed in the U.S. dropped 62% to just 16, and the combined amount of funds raised sank 96% to $540 million. Similarly in Hong Kong that year, it fell 15% to 82, with the amount of money raised dropping 69% to HK$102 billion ($13 billion). The mainland IPO environment also cooled in 2023 as market slumped with CSRC, China's top securities regulator, suggesting that it would limit the number of new listings to arrest the slide. For the whole of 2023, the number of mainland IPOs and the total amount raised dropped 30% and 40%, respectively. Bet-on agreements have become a prerequisite for many PE/VC investors. The terms are stringent, with shorter timeframes for IPOs and higher interest rates on repayments if they fail to list within stipulated timeframe. Annualised interest rates in bet-on agreements usually range from 8% to 10%. For many startups, these agreements have turned into a ticking time bomb. Companies that signed bet-on agreements have found themselves in a dilemma where they can’t fulfil the IPO requirement on time but don’t have enough capital to buy back shares from their investors. Many PE/VC firms are increasingly turning to litigation to exit their investments. There are growing calls for clauses in bet-on agreements that contain IPO conditions to be scrapped. Investment is inherently an act of sharing profits and bearing risks together. The conditions for investing in China are evermore complex. #IPO #CSRC

[Partner Content] For Southeast Asia’s innovative companies, the allure of entering the public markets has never been stronger, offering enhanced visibility, greater capital access, and the potential for scaling. Against this backdrop, DealStreetAsia, in partnership with Hong Kong Exchanges and Clearing Limited (HKEX), is proud to announce the launch of our latest report ‘Unlocking Public Markets: Essential Considerations for SE Asia’s IPO Hopefuls’. The report is an essential guide for privately held companies, whether established conglomerates or venture-backed startups, looking to list on a global exchange. It examines both domestic and international public markets, covering aspects such as regulatory compliance, corporate governance, investor narratives, and post-IPO management. What’s more, the report also serves as a handbook for companies navigating the unpredictability of the public market after their listing—How to manage lock-up period expirations? What are the strategies to prevent price volatility? How to establish strong investor relations and manage expectations? And how to ensure transparency through timely company reports? Download the report for insights into how companies can transition smoothly from the private to the public market: https://buff.ly/4dqeG5e

[Partner Content] For Southeast Asia’s innovative companies, the allure of entering the public markets has never been stronger, offering enhanced visibility, greater capital access, and the potential for scaling. Against this backdrop, DealStreetAsia, in partnership with Hong Kong Exchanges and Clearing Limited (HKEX), is proud to announce the launch of our latest report ‘Unlocking Public Markets: Essential Considerations for SE Asia’s IPO Hopefuls’. The report is an essential guide for privately held companies, whether established conglomerates or venture-backed startups, looking to list on a global exchange. It examines both domestic and international public markets, covering aspects such as regulatory compliance, corporate governance, investor narratives, and post-IPO management. What’s more, the report also serves as a handbook for companies navigating the unpredictability of the public market after their listing—How to manage lock-up period expirations? What are the strategies to prevent price volatility? How to establish strong investor relations and manage expectations? And how to ensure transparency through timely company reports? Download the report for insights into how companies can transition smoothly from the private to the public market: https://buff.ly/4epokVI

#ICYMI here are the latest in #tech and #innovation in the #AsiaPacific from TNGlobal: EY: Asean's IPO proceeds down 20 percent on year to $5.6B in 2023 https://lnkd.in/gJSJ6CfU Crunchbase: global startup funding in 2023 clocks in at lowest level in five years https://lnkd.in/gV6ag6t7

Against the backdrop of yesterday's attack by Iran, we continue to witness the unwavering resilience of Israeli society. In this piece, one which underscores the fortitude of our tech sector, Danny Akerman talks to Globes on those factors contributing to the reopening of the IPO markets and explores which Israeli tech companies are poised for public offerings in the year ahead. "The conditions are ripe for the start of a new wave of IPOs." Give it a read 👉 https://lnkd.in/dQiPnht7 #nomatterwhat

Idiotopedia Lite: (Opinion) HolyMoney https://lnkd.in/g-APXrgZ Just landed and read an interesting news article that appeared on my phone from Bisnis.com. Holywings Group’s plan to go public could be risky, especially considering the current state of the economy. Building a successful business in the F&B industry doesn't happen instantly. It's not as easy as putting things in and expecting immediate effects, like Indomie noodles. I believe price-to-earnings (P/E), price-to-sales (P/S), and price-to-book (P/B) are some of the measures that investors will look at closely. The question is whether their aggressive plans for growth and cash flow forecasts are reasonable for their price, or whether they are based on too-optimistic growth assumptions that could fall apart under stress. I bet simple concerns arise when you look more closely at the numbers. It's good if Holywings may have big plans, but in a business that depends on people's decisions, using a Discounted Cash Flow (DCF) study to guess how much money they will make in the future could be risky. Indeed, investors will want to know if the projections are based on sound facts or if they are just exaggerated to look better. Their asset-based value is also a red flag, since F&B businesses don't usually have a lot of assets. Are they really giving us something of value, or is this just a company built on talk and not enough real assets? With the economy being so bad right now, an IPO could be both good and bad for Holywings. On the one hand, it brings new cash and regional attention. While the public nowadays is highly critical, if the company does not meet growth projections, the stock will drop, which could lead to a crisis of trust. Is this IPO a real step toward growth, or is it just a shiny front for a business that can't last? It's too early to know, but the stakes are high, and in the F&B industry, trust can quickly turn into doubt. My opinion on this case is: what if this IPO isn't really about growth but about giving the business legitimacy for other, less obvious reasons? In this country, businesses are often run by powerful people behind the scenes. Is this just another example of laundering money through a public listing that makes everything look good on the outside? It's a negative thought, but in this world, the story isn't always about making a business last; it's sometimes about making the numbers and the story fit a much bigger, less obvious plan... #passtt! Any other thoughts?

EXCERPTS: China’s depressed stock markets and a slowdown in IPO registration by regulators have sent a chill through the world of private equity (PE) and venture capital (VC) firms, whose funds have traditionally chosen listing as the most popular exit channel for their Chinese investments. The market downturn has spelled trouble for many IPO hopefuls and created a rift between them and their PE/VC investors that is increasingly leading to arbitration or litigation when companies fail to follow an agreed timetable to go public and allow funds to exit. When the promised IPO doesn’t happen, the two sides sometimes try to renegotiate their deal, but the PE/VC firm usually has the upper hand because of the nature of the original bet-on agreement (对赌协议), or valuation-adjustment mechanism. Traditionally, IPOs have been the main channel for PE/VC funds in China to realize their investment. A report by consultancy Deloitte published in January 2023 found that among the investments exited by VC and growth funds in China, more than 90% were via IPOs. In contrast, in the more mature U.S. market, only 5% of the projects exited by PE funds used this channel, with the majority, 52%, exiting through mergers or acquisitions, and 43% through a takeover by another investor, usually another PE fund. In 2022, the number of Chinese companies newly listed in the U.S. dropped 62% to just 16, and the combined amount of funds raised sank 96% to $540 million, according to Deloitte’s report. The number of companies that went public in Hong Kong that year fell 15% to 82, with the amount of money raised dropping 69% to HK$102 billion ($13 billion), it said. The Chinese mainland IPO environment also cooled in 2023 as the stock market slumped and the China Securities Regulatory Commission (CSRC) suggested in August that it would limit the number of new listings as part of a package of measures to arrest the slide. The number of IPO registrations has slumped since then. For the whole of 2023, the number of mainland IPOs and the total amount raised dropped 30% and 40%, respectively. COMMENTS: Bet-on agreements is just a symptom of many problems with the market and not just IPOs. The good news is that China does big and great things when under pressure and the CSRC's new Chairman Wu Qing that some "insiders" have good things to say about his abilities. Plus: I hope Fang Xinghai, Co-Vice Chairman of the CSRC, sticks around as he's is both technically proficient and has great diplomatic skills. Again lots of top-down and bottom-up work is needed. China has the capital and ideas, and a citizenry that is expecting a much better return on their assets now that property is a far less means than in the past. Now it's time for Beijing to fix it and get out of the way. As far as the "doom and gloom" crowd, remember that China was the largest IPO market in the world in 2022-2023 (see attached).

Ledgy have revealed in a new report that 72% of UK tech companies would prefer to IPO in the UK over ANY OTHER destination 🇬🇧 💹   🌐 The report surveyed 2,500 companies across 10 different markets for the State of Equity and Ownership 2024, and found that events in the last year had led to more than 21% deprioritising plans for IPO with the macroeconomic environment the most common factor stopping companies from taking the plunge into public markets 👩💻 Yoko Spirig, co-founder & CEO at Ledgy, commented: “Although it’s a tough time for companies thinking about going public anywhere, London listings have suffered more than most in the last year. So London Stock Exchange bosses should be relieved that for most UK companies, London is still the preferred destination for a stock market listing. That said, our finding that the macroeconomic environment was the biggest factor putting companies off an IPO suggests that we need further softening of inflation and interest rates through 2024 for the tide to really start turning. “Inflation, interest rates and investor sentiment have all played a part as many companies have experienced valuation cuts in the last 12 months. But it’s interesting to observe that the ‘down round’ phenomenon was twice as prevalent in Europe compared to the US. Meanwhile, our data finds that larger companies (>1,000 people) held back from fundraising to a greater extent than their smaller peers, suggesting that the pivot away from ‘growth at all costs’ is real. “Private companies need to know that stock exchanges will have the liquidity and appetite to support ambitious, innovative companies entering the public markets. But if IPOs are not a realistic option, companies also need to be confident that the growth capital to support continued scale will be there. Otherwise, it will be harder for London to sustain its place as one of the world’s preeminent tech hubs.” Read the report on the link below! 👇 Valma Tikkakoski Timo Horstschaefer Tim Oliver Pietsch Joe Brennan #IPO #uktech #initialpublicoffering #london #uk #fintech #fintechnews #londonstockexchange #economicchallenges #stockexchangelisting #stockexchange #fintechcommunity #techhub

🔴🇨🇳🇭🇰🇺🇸In Depth: China IPO Slowdown Pits Startups Against Investors By Yue Yue and Zhang Yukun Caixinglobal Mar 27, 2024 09:07 PM 🌐🔗 https://lnkd.in/gYsfVqsa 🔶🇨🇳Traditionally, IPOs have been the main channel 🔸for PE/VC funds in China to realize their investment. A report by consultancy Deloitte published in January 2023 found that among the investments exited by VC and growth funds in China, 🔸more than 90% were via IPOs. 🔶🇺🇸In contrast, in the more mature U.S. market, 🔸only 5% of the projects exited by PE funds used this channel, 🔸with the majority, 52%, exiting through mergers or acquisitions, 🔸and 43% through a takeover by another investor, usually another PE fund. 🔶🇨🇳🇺🇸In 2022, the number of Chinese companies newly listed in the U.S. dropped 62% to just 16, 🔻and the combined amount of funds raised sank 96% to $540 million, according to Deloitte’s report. 🔶🇨🇳🇭🇰The number of companies that went public in Hong Kong that year fell 15% to 82, 🔻with the amount of money raised dropping 69% to HK$102 billion ($13 billion), it said. 🔶🇨🇳🇨🇳The Chinese mainland IPO environment also cooled in 2023 as the stock market slumped 🔸and the China Securities Regulatory Commission (CSRC) 🔸suggested in August that it would limit the number of new listings 🔸as part of a package of measures to arrest the slide. 🔸The number of IPO registrations has slumped since then. 🔻For the whole of 2023, the number of mainland IPOs and the total amount raised dropped 30% and 40%, respectively. Daniel’s COMMENTS: Bet-on agreements is just a symptom of many problems with the market and not just IPOs. The good news is that China does big and great things when under pressure and the CSRC's new Chairman Wu Qing that some "insiders" have good things to say about his abilities. Plus: I hope Fang Xinghai, Co-Vice Chairman of the CSRC, sticks around as he's is both technically proficient and has great diplomatic skills. Again lots of top-down and bottom-up work is needed. 🔶China has the capital and ideas, and a citizenry that is expecting a much better return on their assets 🔶now that property is a far less means than in the past. 🔸Now it's time for Beijing to fix it and get out of the way. 🔶As far as the "doom and gloom" crowd, 🔸remember that China was the largest IPO market in the world in 2022-2023 (see attached). .