Taking a company public is often seen as the pinnacle of scaling, but it’s a journey riddled with challenges, tough decisions, and is not for the faint-hearted.
At this year’s Fintech Connect, Fintech Fringe hosted the Founders Forum stage and we invited Neil Shah, Head of Tech Primary Markets at the London Stock Exchange (LSE) to lead a candid and insightful discussion with Lisa Picardo, Chief Business Officer (UK) at PensionBee, and Jon Prideaux, Non-Executive Director at Boku.
They really held the audience captive, as they shared their IPO journeys, offering practical advice and addressing common misconceptions.
The Role of the London Stock Exchange in Scaling Success
Opening the session, Neil Shah highlighted the unique role the LSE plays in supporting ambitious companies.
Neil also dispelled the myth that scaling through public markets is only for unicorns.
"The LSE is particularly well-suited for companies in the £100 million to £3 billion valuation range," he explained. "In the US, unless you have over $200 million in recurring revenue, public markets are inaccessible. London fills that gap."
"There’s this belief that if you’re not a billion-dollar company, you’ve somehow failed. That’s simply not true. We see companies achieving remarkable growth post-IPO, especially in tech and fintech sectors."
Diverse Funding Journeys: PensionBee and Boku
Lisa Picardo shared PensionBee’s unconventional path, bypassing venture capital to retain control.
"We raised funds through angel investors, which allowed us to keep our vision intact. When it came time to raise more significant capital, we chose the public route to avoid private equity’s restrictive terms and preserve our single-class share structure."
Jon Prideaux’s story with Boku, however, was a lesson in navigating the traditional VC path.
"We were funded by top Silicon Valley firms like Andreessen Horowitz, but by Series D, the capital structure became unwieldy. Going public allowed us to simplify and focus on scaling globally."
Neil’s facilitation brought these contrasting journeys into sharp focus, noting that both paths ultimately benefited from the transparency and discipline that public markets enforce.
IPO: More Than Just Raising Capital
Neil emphasised that listing on the LSE isn’t merely about fundraising. “An IPO signals ambition,” he said.
"An IPO signals ambition," he said. "It’s about credibility, transparency, and access to deeper pools of capital, enabling companies to realise their full potential."
Lisa highlighted how going public bolstered PensionBee’s brand.
"For us, being a public company wasn’t just about capital—it was about trust. Customers saw us as a fintech in the early days. Post-IPO, we became a trusted financial services provider, which accelerated our customer acquisition."
For Boku, the impact was operational.
"The public markets forced us to become more disciplined," Jon said. "Having our financials in the open improved how we managed the business. Plus, raising funds for acquisitions became significantly easier. We secured £40 million for a deal in a fraction of the time it would’ve taken privately."
Neil Shah on IPO Myths and Realities
Neil Shah tackled some of the common misconceptions around IPOs head-on.
He also addressed the stigma around AIM, the LSE’s growth market. “About 70% of London’s tech companies are on AIM. The regulatory bar may be lower, but the benefits—access to capital, liquidity, and simplified governance—are significant. It’s a fantastic stepping stone.”
"Some founders think going public is the end of the road, but it’s just the beginning," he explained. "Public markets aren’t for founders looking for a quick exit; they’re for those with long-term vision and the resilience to navigate the demands of being a public company."
He also addressed the stigma around AIM, the LSE’s growth market.
"About 70% of London’s tech companies are on AIM. The regulatory bar may be lower, but the benefits—access to capital, liquidity, and simplified governance—are significant. It’s a fantastic stepping stone."
Practical Advice from the Panel
The discussion was packed with actionable advice for founders considering an IPO:
- Prepare Early:
Neil underscored the importance of readiness, encouraging companies to start preparation years in advance. “Run IPO readiness exercises and focus on strengthening financial reporting. Investors value predictability and clarity.” - Articulate a Clear Equity Story:
Lisa stressed, “You need a compelling equity story that resonates with investors. Be clear on your vision, funding needs, and timeline before starting the process.” - Build the Right Team:
Jon reflected on the need for experienced advisors and internal teams. “Choose brokers and analysts who understand your business and can advocate effectively. Internally, invest in functions like finance and investor relations to support public company life.” - Focus on Execution:
Neil wrapped up the session with a crucial reminder: “Public market investors don’t want surprises. Underpromise and overdeliver—it’s better to exceed modest expectations than fall short of ambitious ones.”
The Cultural Shift to Life as a Public Company
Both Lisa and Jon discussed how becoming public reshaped their companies. Jon agreed, adding, “The transparency of public markets is a double-edged sword. It forces you to be accountable, which ultimately strengthens the business. But it’s not for the faint-hearted—predictability and discipline are key.”
Lisa noted, "Your entire organisation needs to align with the discipline of being public. Forecasting, remuneration, and reporting all take on new levels of importance. It’s a cultural shift as much as an operational one."
Jon agreed, adding, "The transparency of public markets is a double-edged sword. It forces you to be accountable, which ultimately strengthens the business. But it’s not for the faint-hearted—predictability and discipline are key."
Key Takeaways: Why Ambitious Companies Should Consider an IPO
Neil Shah closed the session with a powerful message:
"Great companies are built in public. The resources, credibility, and growth opportunities that public markets provide are unparalleled. If you’re an ambitious founder with a clear vision, an IPO on the London Stock Exchange could be the gateway to realising your company’s full potential."
With PensionBee and Boku as shining examples of what’s possible, the session underscored the LSE’s role as a cornerstone for fintech growth and scaling.
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