Index Ventures: “We have a dozen companies gearing up for IPO”

04 Feb, 2013



It seems like there might be some exciting times ahead for the European startup scene. Robin Klein, partner at Index Ventures, said in an interview that between Index and TAG, they have “probably a dozen or more companies that are thinking of IPO in the next while.” (The Accelerator Group/TAG is an early-stage investment group founded by Klein).

Most European venture capitalists in Europe agree that an attractive stock market for tech companies would provide an easier route to the exit. A few big exits will create a new, extremely valuable class of  business angels. Entrepreneurs with an exit under their belt have deep experience in their industry, cash to invest, and a still-warm network from their days running a successful company. Those three things can really a startup to an entirely new level.

Last week, Bruce Aust from Nasdag said, also in the WSJ, that there are ‘about 20 European companies’ looking to IPO on Nasdaq: “A few from Russia, a few from Germany, Spain and Israel,” he said. (I wonder if those “few” from Germany – would they include Rocket Internet or one of their companies, like Zalando? And the Nordics are notably absent in his list. Feel free to speculate in the comments).

But Robin Klein would rather see European entrepreneurs IPO on a strong European stock exchange, instead of hopping over the Atlantic to float on Nasdaq. Klein is quite outspoken about his hopes that the European market will finally get a thriving stock exchange for tech companies. One or two companies could be enough to create “a snowball”, he said.

He also warned entrepreneurs that the valuations you get on the Nasdaq may be higher, but that maintaining a relationship with the American investors and analysts is ‘highly distracting’ for a team.

“You have to be on the road every quarter or your stock dwindles.”

The London Stock Exchange recently tried to become more attractive for tech companies to float.

via [WSJ][photo: Flickr]

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Raf Weverbergh

Editor of whiteboard. Raf Weverbergh was a magazine journalist whose work appeared in magazines like Rolling Stone, Playboy, Mail on Sunday, Publico and South China Morning Post. He is the co-founder of FINN, a corporate communications agency where he advises startups and multinationals on their PR and Mustr, the easiest media database for PR professionals. You can contact him on Twitter, Linkedin or Skype (rafweverbergh).

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