There’s been a lot of startups listing on the ASX of late. Migme, Fatfish, and now Flexiroam. I’m quite skeptical about this as it does seem like a last resort versus getting VC money. At least in Flexiroam’s case, this seems so.
I find their case odd, I mean, the company’s making decent revenues, and yet couldn’t find VCs who could give them a valuation they want. This is weird given the investment we’re now in. Tons of series A investments coming in, and rising startup interest. And investors are undervaluing Flexiroam? Either they think its prospects are limited (slow growth, niche appeal, and stagnant telco market maybe), or they’re really missing out on an opportunity.
It is possible that Flexiroam went ahead with this course because Ziptel, a similar company, did well. But that has to be weighed against the effort of meeting regulatory and legal requirements. Sure, VCs also need to do due diligence, but that’s probably an easier ride than IPOing.
Flexiroam’s prospectus can be viewed here. As far as I can tell, nothing much on past growth. Anything interesting in there?
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