Lessons Startups Can Learn From Failed Ipos

Dealstreetasia, a financial news website base in singapore, says startups in southeast asia are raising more money – from $9.4 billion in 2020 to $25.7 billion in year 2021.

But the happiness doesn’t last forever with some newly liste startups. In the past year, a number of high-tech companies have shown signs of difficulty, such as zomato and paytm from india, grab from singapore, bukalapak from indonesia and didi from china, among many other startups. .

Interestingly Many Companies Such as Grab and Paytm

Hold the top share of their market. Low returns, even in some cases large negative returns, have le to a disconnect between the valuations of the mass market and those of venture capital firms (vcs).

Nitin pangarkar, associate professor in Motor Freight Transportation Email List the department of strategy and policy at the national university of singapore business school, outlines the lessons learne from these faile ipos and which startups should take note to avoid. Similar fate.

Vc is the “holy grail” of many startups. However, after many faile ipos, we should temper the belief that vc funding is a good proxy for a startup’s future potential.

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Undeniably Vc Investors Can Spot a Number of Emerging Technologies

and promising companies. Vc portfolio successes result in good portfolio performance and a reputation for savvy investors.

But venture capitalists can also suffer from some biases. Such as fear of missing out and therefore being able to invest in companies that CMB Directory do not perform well over the meium to long term.

Startups should view vc funding, even at high valuations, as only a positive signal and a resource to execute on their strategies.

The main focus of every startup should be to execute its strategy without being hit with vc backing. This will yield profitable results instead of just growth.

Do not burn money to hope for future profits
Many new technology companies sell their products or services below cost, assuming and hoping that they can make a profit after gaining market share.

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