Guzman IPO, Nasdaq reality check spark ASX rethink for startups
The frosty sentiment towards the ASX among startups is thawing in the wake of the Guzman y Gomez IPO — just as the barriers to listing in the US get higher.
Guzman y Gomez's successful $3 billion float is easing sentiment among Australia's most promising growth companies toward the deeply uncool ASX, just as the barriers to a coveted listing in the US are getting higher.
Ever since Atlassian eschewed a local listing for a debut on the Nasdaq in 2015, a move likely to be emulated by Canva in the next 12 months (albeit in its case on the New York Stock Exchange), many Australian startups have had stars in their eyes and dream of an IPO in the US.
The dominant narrative espoused by top-tier founders and the VCs who back them has been that the ASX is not a friendly place for growth companies — particularly, but not exclusively, in the tech sector.
But last week's Guzman IPO, which saw the burrito chain controversially command a world-beating earnings multiple, has complicated that narrative and piqued the interest of founders and VCs seeking a path to liquidity.
