Preparing Your Startup for an IPO: What Founders Really Need to Know

For many startup founders, going public feels like the ultimate milestone, the moment your startup “makes it.” But the reality is a bit more nuanced. An IPO isn’t the finish line – it’s a transition into a very different kind of company. That shift is something many founders underestimate.

In our recent webinar, participants explored both the opportunities and challenges of taking a startup public. Michael Mosimann, Gabriel Albemark, and Mark Roe, all partners at Eversheds Sutherland, shared practical insights on IPO readiness, regulatory requirements, and the strategic trade-offs founders face. The session gave a clear, grounded view of what it really takes to navigate the path to public markets.

It’s not an exit, it’s a new phase

There’s a common perception that an IPO is the grand exit. In some cases, that’s true. But more often, founders stay involved and continue building, just now under the spotlight of public markets. 

In that sense, going public is less about cashing out and more about unlocking the next stage of growth. It gives companies access to capital that can fuel expansion, acquisitions, and long-term strategy. But it also fundamentally changes how the business operates. As it was put in the webinar, ringing the bell is when the real work begins.

The trade-off no one can avoid

The appeal of an IPO is obvious, access to capital, increased visibility, and a stronger market position. Being listed can open doors that simply aren’t available to private companies. But none of that comes for free.

You’re signing up for a world of compliance, reporting obligations, and scrutiny. Suddenly, you need robust systems, experienced advisors, and a governance structure that can stand up to public-market expectations. Internally, the company has to mature quickly. IPOs are powerful growth tools, but they come with a level of complexity and accountability that not every startup is ready for.

Transparency changes everything

One of the biggest shifts is how much of your company becomes public. Financials, strategy, risks, these are no longer internal discussions. They’re shared with investors, analysts, and the market at large. That level of transparency can feel uncomfortable at first, especially for founders used to operating privately.

But it cuts both ways. While there’s more scrutiny, there’s also more trust. Investors rely on that transparency, and it often makes it easier for them to commit capital. It also raises your company’s profile and credibility in ways that can be hard to replicate privately.

You don’t fully control your valuation anymore

In private fundraising, valuation is a negotiation. Once you’re public, it becomes a live reflection of how the market perceives you. That can be empowering or frustrating.

On one hand, the market gives you constant feedback. On the other, it can undervalue you, overreact, or shift sentiment quickly. Founders lose some control, but not all of it. How you communicate your strategy, performance, and vision still plays a major role.

That’s why having a strong “equity story” matters so much. Investors need to understand not just what your company is today, but where it’s going. At the same time, it’s worth being cautious about hype. Inflated expectations can lead to inflated valuations and eventually painful corrections.

Preparation is where IPOs are won or lost

If there’s one topic that comes up again and again, it’s this, preparation is everything.

A strong IPO doesn’t come together in a few months. It often takes a year or more of deliberate work, building financial systems, tightening governance, refining the business model, and aligning the team. Companies that rush tend to pay the price later. Missing early performance targets or issuing profit warnings can damage investor confidence almost immediately. And once that trust is lost, it’s hard to rebuild.

In today’s market, investors are also far more selective. They’re looking for real traction, solid financials, and credible growth, not just a compelling pitch deck.

Where you list matters

Another decision startup founders often underestimate is where to go public.

Different markets come with different expectations, investor bases, and levels of flexibility. Growth-focused exchanges like London’s AIM or Nasdaq First North in Sweden have become popular for startups because they’re designed with scaling companies in mind.

Still, even these markets require a certain level of maturity, things like a minimum shareholder base, sufficient funding runway, and governance structures that can support public reporting. Choosing the right exchange isn’t just a technical decision. It can shape how your company is perceived and valued over time.

Not everyone stays public

Interestingly, going public isn’t always a one-way journey. In recent years, there’s been a noticeable trend of companies being taken private again, often through acquisitions by private equity firms. In some markets, fewer companies are going public in the first place. That doesn’t mean IPOs are losing relevance, but it does highlight that being public isn’t always the best long-term fit for every company.

What startup founders should focus on early

If an IPO is even a distant possibility, the groundwork starts much earlier than most people think.

It’s about building solid financial reporting systems, making sure legal and IP structures are clean, and developing a clear, compelling story about why your company deserves investment. These aren’t things you can fix overnight. The startup founders who navigate IPOs successfully are usually the ones who treat preparation as part of the journey, not a last-minute checklist.

Final thoughts

An IPO can be transformative. It can accelerate growth, elevate your company’s profile, and open up new strategic possibilities.But it’s also demanding. It requires discipline, transparency, and a willingness to operate in a much more public way. The key is going in with clear eyes. Because the real question isn’t whether an IPO is impressive, it’s whether your company is truly ready for what comes after.

Access the full webinar replay in the Swiss Startup Association Education Library, free for members. Not a member yet? Join the community and get access to practical sessions that help you protect your business before something goes wrong. 

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