Alim Khamitov PhD’s Post

Only 2% of IT companies and startups in the world make it to IPO. Therefore, when I ask entrepreneurs where they see exit for themselves and investors, and I hear only about going public, I wonder what are other options there. As practice shows, in addition to IPOs, MBOs (buyout of shares by managers), buyout by a late-stage investor (secondary), or most often M&A (mergers and acquisitions) are more common. By the way, for our portfolio of the first MOST Ventures fund, I also foresee the majority of exits through M&A. And here I am talking about venture business models, when you invest in a company that is growing and is capable of growing to such a scale that there is a large buyer for it. That is, free money is invested in growth, and the main goal is to increase the capitalization of the company and its subsequent sale. In dividend models, the main goal of the founders and investors is to develop the company to the point where it starts to bring dividends. Investors invest in growth only to the extent that it helps increase dividend flow. These thoughts plus my opinion on the investment market were shared at a recent M&A community meeting organized by international audit network Baker Tilly Kazakhstan Olga Zagidullina, CFA and iDeals Anna Volfman Thank you for the invitation! I was also glad to hear insights from one of the strongest lawyers I know, my partner Vladimir Shuster By the way, recently on the initiative and with the support of Qazaqstan Investment Corporation and personally Ainur Kuatova, the M&A and Market Research Department of Baker Tilly Qazaqstan Advisory conducted a large-scale research of the private equity market in Kazakhstan. The link is in the first comment. Recommended to study. #MOST #mostecosystem #BakerTilly #iDeals