Redline launches on AIM

2 responses

  1. KM says:

    Though Redline may very well be successful, what is disconcerting and likely unsustainable is the pipeline (pipe-dream) of other Canadian venture backed companies looking at the AIM for the exit – a place to achieve partial liquidity and premium valuation (35% premium to quote an investment banker!). Not every Canadian company can be another Sandvine, which is still catching up to its valuation.

    Sure, entrepreneurs should always “aim” for an exit (in fact, board should force management to do exit analysis every year) – but don’t always count on an exit on the AIM! The cost of capital shouldn’t be that different there, so this valuation arbitrage (hype) cannot be sustainable.

  2. MRM says:

    Interesting that Sandvine is following in the tradition of another Waterloo star (Open Text) of only initially going public outside Canada and then returning to list on the TSX thereafter.

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