Capital Markets Insights

Why Our FinTech Company Chose to Go Public

Katipult is now available for purchase on the Toronto Venture Exchange under the ticker symbol (TSXV: FUND). As indicated in our filing, we have already raised funds for our 12-month growth plans.

The Katipult Team & Our New Board

We have posted growing revenues and profitable operations in what we describe as our market validation period, and now we are looking at aggressive commercialization. Katipult is a financial technology company offering a cloud-based software infrastructure that allows firms to design, set up and operate an investment platform to offer securities to various types of investors. The platform automates many components of investor and investment management including components of financial transactions, investment marketing, and dividend payouts.

There are very few publicly listed FinTech stocks, so investors looking for exposure to financial technology companies will have Katipult as a portfolio option pending their due diligence. The vast majority of fintech firms are following the traditional venture capital-backed route, which is a path we feel has many pitfalls for growing a company like Katipult.

You can find Katipult listed under the ticker symbol (TSXV: FUND)

While many startups may be viewing an IPO as an exit strategy, we believe accessing the public markets are part of a prudent growth strategy. We believe this approach will build on our competitive advantages and bring in a diverse investor base all looking to participate in our company successes going forward.

The venture capital model is not for us. In general, VC’s investment philosophy is based on a portfolio of companies of which most will fail, and a few will have large returns to offset the losses. Those are not the type of partners we’re interested in having.

Even though Katipult is bucking the traditional IPO strategy, our company is still all about recurring revenue like most tech firms in Silicon Valley. We charge monthly for our software product, which is delivered via the cloud as a managed service, creating a stable and predictable revenue stream. Recurring revenue business models are attractive to investors.

Other Canadian-based technology firms, such as Shopify (TSX: SHOP) or Kinaxis (TSX: KXS), that have filed to go public have had business maturity and longer track records, of course, but with our cash flow management, lack of any long-term debt, and our existing funding dollars, Katipult is looking to provide investors an opportunity to support the company at a much earlier stage of growth.