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Taking your tech startup public is more than a milestone. It’s a transformation. But ambition alone won’t get you there. An IPO demands careful planning, operational maturity and a foundation that can withstand the rigors of public company scrutiny. Drawing from industry benchmarking data and insights from PwC's Technology IPO Benchmarking Analysis, let’s explore some tips to help you evaluate your readiness and establish a timeline for IPO preparation.
Seizing the moment — why tech startups should act now
The window for tech IPOs is opening again. After a period of slowed IPO activity, we've seen a recent modest recovery, with companies benefiting from some favorable macroeconomic conditions and investor optimism around artificial intelligence. That appetite for high-growth tech companies remains despite economic uncertainty. In fact, PwC's May 2025 Pulse Survey indicates TMT executives are more optimistic than those in other key industries, with 36% anticipating opportunities to outweigh challenges in the business environment 12 months from now. They’re leaning on innovation to foster long-term resilience. There’s also a large backlog of private companies in the pipeline, many of which have spent the past few years improving their margins while scaling operations.
IPO trends reveal that companies acting now can capitalize on renewed investor confidence and increasing demand for disruptive technologies.
Lessons from PwC's Technology IPO Benchmarking Analysis
Additional positive signs? While regulatory scrutiny remains a key consideration, shifting policies and guidelines are improving predictability for companies navigating public market entry. Moreover, with AI, cloud computing and digital platforms shaping the next wave of innovation, investors are actively seeking companies that can define the future of technology. If your startup has strong fundamentals and a compelling growth story, this may be a good time to transition from private to public markets.
However, seizing this moment requires more than market timing — it demands operational maturity that meets rigorous expectations from investors. Don’t underestimate strong financial processes and controls, governance structures and scalable systems. They aren’t just compliance exercises — they’re critical to sustainable success post-IPO.
Operational maturity — the cornerstone of IPO readiness
Operational maturity is the foundation for a successful IPO. Companies should align their teams, internal operations and systems with public company expectations.
Lessons from PwC’s Technology IPO Benchmarking Analysis
- 65% of companies disclosed material weaknesses at IPO — a 15% increase from prior years, primarily due to:
- Lack of financial reporting oversight
- Insufficient internal procedures
- Inadequate technology systems.
Ignore these gaps and your IPO timeline may slip — and you risk operational challenges post-IPO.
- Companies that went public via an IPO started formalizing internal controls one to two years in advance, while those using SPAC mergers often delayed this step until the final six months — leading to greater risks.
The three pillars of IPO readiness
To navigate challenges and achieve operational maturity, companies should focus on three critical areas.
- People
- Hiring experienced public company professionals early is critical.
- Internal audit/SOX directors and SEC reporting directors were the hardest positions to fill, and tech company leaders wished they had hired them earlier.
- 75% of CFOs had prior public company experience, underscoring the importance of leadership with IPO knowledge.
- Accounting team scalability: The size of the accounting function typically grows with company revenue, with teams of more than 10 members common among IPO-ready startups.
- Processes
- Define and operationalize KPIs early. KPIs vary by sub-industry, and the diversity of revenue-related and monetization-related KPIs have been increasing. Focus on defining, measuring and forecasting metrics like ARR and RPO to strengthen investor visibility.
- Improving accounting close timelines to meet public company reporting demands is crucial, with 66% of companies closing their books in 15 calendar days or less post-IPO, compared to only 35% pre-IPO.
- Companies that excelled post-IPO closed their books in under 10 days, signaling well-optimized processes which allow for more time on analysis and continued cross-functional improvements.
- Systems
- Implement scalable enterprise resource planning (ERP) platforms and related tools: 54% of companies used NetSuite as their ERP system, while others relied on Oracle, SAP or Workday.
- 83% of companies had their ERP system in place at least one year before IPO, emphasizing the importance of early implementation.
- Systems for payroll, expense reporting, HRIS and procurement are necessary for scalability.
| The pitfall | What our data shows | How to get ahead of it |
| Delayed internal controls implementation | 65% of companies disclosed material weaknesses at IPO, largely due to financial oversight issues. | Start SOX compliance early — companies that formalized controls 1-2 years in advance had stronger post-IPO outcomes. |
| Underestimating financial close complexity | Pre-IPO, most companies took over 16 days to close a quarter; post-IPO, 66% closed in 15 days or less. | Establish a “public company” reporting cadence at least two quarters before IPO. |
| Late hiring of key personnel | Internal audit/SOX, SEC reporting and technical accounting roles were cited as the hardest to fill, and companies regretted not hiring them sooner. | Hire experienced talent early to avoid last-minute experience gaps. |
Your IPO timeline — prepare with confidence
Launching an IPO is a high-stakes journey, requiring organizations to think and act like a public company well in advance. Plan to operate as if you’ve already gone public for at least two quarters before filing. This means implementing necessary systems and processes no later than nine to 12 months before the desired IPO date.
PwC’s benchmarking data analysis shows that companies that took a structured approach to IPO preparation had smoother filings, fewer SEC comments and faster market entry.
Sample IPO timeline
IPO effectiveness timelines
- 85% of companies went public within six months of initial SEC filing.
- 50% completed the IPO in just three months from initial SEC filing.
- Adequate lead time is needed to augment resources, implement organizational changes and meet accelerated reporting requirements ahead of initial SEC filing.
Driving engagement and growth
Achieving IPO readiness is more than just a checklist — it’s an investment in your company’s future growth and resilience. By proactively addressing gaps in your systems, processes and talent, you can position your company now to thrive as a public business. Using tools like readiness assessments and benchmarking data provide clarity on where you stand and enable a clear path forward.
Tech startups that start preparing now will be well-positioned to capitalize on investor enthusiasm. Are you ready to take your company public?
Get ahead in your IPO journey
PwC’s latest Technology IPO Benchmarking Analysis
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