What a difference a few months can make. From one of the hottest IPO markets in history to an almost 180-degree shift in direction, we are now in a period where IPOs are being delayed—and sometimes canceled entirely.
Ernst and Young reports that global IPO volumes have fallen 37% in Q1 2022 (YOY), even though this January was the strongest one by proceeds in 21 years. While the early weeks of 2022 may have kept up the IPO momentum from Q4 2021, we can now definitively say global markets are experiencing a slowdown in IPO activity, as you can hardly have failed to have noticed.
Despite a challenging environment, marketing can still have an impact on an organization’s IPO arc. This change in environment doesn’t mean many companies don’t still have work to do in preparation for what may be coming around the corner faster than we may expect. In fact, for businesses with their sights set on an IPO a year or two out, now is exactly the time for CMOs to begin preparations. Take a look back in history, and you will notice that some of the most exciting tech companies emerged out of our last downturn in 2008. WhatsApp, Uber, Venmo, Instagram, Pinterest, and Slack—just to name a few. The companies that win are the ones who use the down markets to fortify their strategy.
So, what does that mean for marketing leaders?
There has never been a better time for CMOs to educate themselves on what is needed of them and their org to deliver a successful IPO. If you are pulling up a chair to the table 6 months before going public, it’s already too late to have a meaningful impact as CMO. Look at this downturn as the gift of time to get familiar with everything you need to do—because it’s a lot. Not only is now the perfect time to take a fresh look at your TAM and how you’ve seamlessly connected it to your category, but now you must also consider how this recent downturn may impact future business—and what that means for your path to IPO.
Luckily for you, we have put together “The Room Where It Happens: A CMO’s Guide to a Successful IPO.” Our guide will help you get to work today on the things that can set you up for IPO success in the future, but that you should start doing now:
- Know what needs to happen throughout the entire IPO journey
- Develop your category
- Continue to build out proof points and customer stories
- Build out your IPO marketing plan
- Invest in your brand and your story
The only certainty for tomorrow is the confidence that markets will change on a dime. The CMOs who are prepared to win are the ones who look ahead to the next few years rather than getting lulled into a sense of complacency by today’s challenging environment. Your job is to be proactive and prepare for what’s next. Ours is to provide the tools you need to do that. Ready to get to work?