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Why tech startups should be wary of the Spac and IPO craze

Getting to the end goal in public markets is like running a marathon, so firms should avoid sprinting to list before they are ready

Pär-Jörgen Pärson, a general partner at global venture capital fund Northzone, says running towards listings because of “fear of missing out” is unsustainable
Pär-Jörgen Pärson, a general partner at global venture capital fund Northzone, says running towards listings because of “fear of missing out” is unsustainable

The vibrant market in Europe for initial public offerings is a cause for celebration and shows just how far the tech ecosystem has come since the last financial crisis. While the size is still not quite comparable to rival global markets in the east and west, the quality of new market entrants and talent is outstanding, with more and more positive success stories coming out of the region.

The emergence of several attractive listing destinations is seeing more foreign investors placing their bets on Europe, with InPost and Allfunds floating in Amsterdam, online learning company Kahoot! in Oslo, and Trustpilot executing London’s first IPO since Brexit.

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