What are the 3 requirements to go public in 2024?
‘This is the year that the shit’s hitting the fan because you can only extend runway so much, and it doesn’t mean much if you’re not growing.’ – Ed Sim
Ed Sim (Founder and Managing Partner at Boldstart Ventures) and Jamin Ball (a Partner at Altimeter Capital) explore the dynamics of M&A markets, prerequisites for an IPO in 2024, and the impact of venture capital investments on these processes.
They shed light on current trends in seed and series A investments, the challenges posed by inflated valuations, and the influence of market conditions on strategic decisions.
Table of Contents
- Dynamics of Late-stage Investments
- Threefold Criteria for Going Public
- Fluctuating Venture Capital Investment Trends
- The Pitfall of Inflated Valuations
- Implications of High Inception Rounds
Dynamics of Late-stage Investments
Late-stage investors are seeking to recoup their investments for reinvestment or redistribution to LPs. This trend could potentially affect M&A markets as regulatory constraints may make large-scale mergers and acquisitions more challenging.
Threefold Criteria for Going Public
For a company to go public, three key criteria must be met: achieving cash flow break-even status, demonstrating high growth (30%+), and moving towards a rule of 40 or 50 with more emphasis on growth than cash flow break-even.
