A group of technology veterans have recently set up a new fund in order to invest in US-based growth companies and take them to public Asia-Pacific exchanges. The Global Public Offering Fund has created their platform in response to the current US IPO market, which according to the GPO fund, is broken for new smaller startups.
The Global Public Offering Fund maintains that global public offerings, as opposed to US-based IPOs, will become the preferred path for company launches. The practice of offering public offerings for small growth companies was once a powerful tool for new startups, but recent changes in the US environment has made it all but impossible for these startups to gain traction.
Last year just 18 US-based companies completed IPOs that raised more than $50 million USD, as opposed to more than 550 in 1997. The Global Public Offering Fund aims to change this, making it possible for startups to gather venture capital internationally.
What Is Global Public Offering Fund?
The Global Public Offering Fund is the brainchild of Jeff Stewart, the current CEO of Singapore-based Leddo. As a fintech pioneer, Stewart has funded a variety of US based tech startups. In partnership with Key Compton, another tech entrepreneur, Stewart has created the Global Public Offering Fund in order to invest in world-class forward-leaning tech focused growth companies that boast private valuations in the range of $100 million to $200 million.
We believe a public offering lays the foundation for growth, providing companies with improved credibility, transparency and financial flexibility… the U.S. public markets have failed an entire generation of growth companies. Instead, companies are resorting to private investment rounds that result in complex capital tables and lead to misaligned stakeholder interests.”
The Global Public Offering Fund investment thesis is relatively straightforward. Focusing on founder-lead tech companies, the GPO fund aims to identify platforms that can grow aggressively in the Asia Pacific region. Interestingly, the Global Public Offering Fund has elected to use a crypto-based ICO, or initial coin offering, to raise capital for their venture. While details on the ICO are scant, it’s possible to sign up for updates on the GPO fund website.
The Global Public Offering Fund is an interesting bridge between the existing US IPO market and the rapidly developing ICO ecosystem. While the specifics of the Global Public Offering Fund are yet to be seen, it’s certainly worth keeping an eye on.