Atlassian, an Australian-based technology company, is planning to offer a U.S. Initial Public Offering (IPO) before the end of the year. Atlassian is one of the few startups that has thrived, for the past 13 years it has been in operation, without external investors. The plan to initiate the IPO is likely to make market competition stiffer. The company is known for its popular tech products such as HipChat, Bitbucket code and JIRA Service Desk.
Atlassian is one of the few startups that has thrived, for the past 13 years it has been in operation, without external investors.
A report released last year valued the company at $3.3 billion, though without venture funding, and with only three companies -Accel Partners, Dragoneer Investment Capital and T. Rowe Price Group- that successfully purchased the company’s secondary shares. The company has no salespeople as most of their sales, which have prompted their rapid growth, were initiated by way of referrals and word-of-mouth.
Entering the public market is an idea that not even startups valued at over $1 billion opt for. Therefore, if this plan is successfully executed then there is the likelihood that this notion will change. Scott Farquhar, co-founder and co-chief executive of Atlassian had previously said, “We don’t have the pressure other companies have to get through a public offering.” Therefore their decision to get into the public domain leaves many people expecting something new and exciting. There are two other startups, Square and Pure Storage, that are also planning IPOs this year.
The idea of an IPO came at a promising time for the company as it is expected to create more business opportunities. The rise of Silicon Valley has increased demand for the company’s products & services and this will have a positive impact on the business should the IPO emerge successful.
Atlassian has a financial model that is virtually non-existent in private companies
In February of this year, Atlassian hired a new Chief Financial Officer (CFO), Erik Bardman, who is confident that the IPO will be successful. He noted that “At our size and scale, rate of growth and demonstrated ability to manage the business to profitability, Atlassian has a financial model that is virtually non-existent in private companies.