Now is a good time for tech companies to build out their comms programs in advance of an offering
2015 saw a slow down in IPOs, with IPO guru Renaissance Capital reporting that the number of companies completing an IPO in 2015 dropped 40 percent from 2014. The tech sector in particular took a big hit.
Despite the weakness, there were some tech IPOs in 2015, including Atlassian, FitBit and security SaaS company Mimecast (NASDAQ: MIME). Highwire was privileged to provide IPO communications support for Mimecast’s November 2015 offering, including managing global media relations, developing messaging and positioning as well as helping media train the company’s CEO in preparation for the day.
Will 2016 see a resurgence of tech IPOs? At this point, it’s hard to tell. Many experts are saying “Don’t Hold Your Breath for a 2016 Tech IPO Boom”. For some startups, that could actually be a blessing in disguise.
Why would a slowdown in IPOs be a good thing for tech companies? Because IPO preparation should start far in advance of a possible filing, and that’s too often not the case. In fact, once a company is actively involved in the IPO process, it’s probably too late to launch a heavy media relations campaign due to the quiet period restrictions.
So if you are one of those tech companies waiting in the wings for the IPO window to open again, what can you do to prepare?
Get out there and tell your story.
Develop a clear and compelling way to communicate and then develop strong relationships with your beat reporters at the major media. As in all relationships, it should be a two-way street where you serve as a resource for the media when they need you. As a result, when listing day finally does come, they’ll be much more likely to cover you and much more educated on your value proposition. This is even more important for those B2B tech companies that don’t have the high levels of awareness that consumer companies command.
No one knows when the IPO window will open again, but in the meantime, there’s plenty tech companies can do with their comms programs to prepare.
What do you think 2016 will bring for the tech IPO market? Share your thoughts below.
