Some Asian venture-backed companies are preparing to seek public listings at younger ages, Granite Asia senior managing partner Jenny Lee told CNBC, describing a faster route to an initial public offering (IPO).
Lee said some later-stage companies Granite Asia is seeing are starting IPO preparations at four or five years old. Separately, she put the average holding period before a company goes public at eight to 10 years. Western companies tend to remain private longer than Asian firms, she said. The four-to-five-year age estimate describes later-stage companies in the firm's view, not all startups in the region. The figures refer to separate measures: a startup's age when IPO preparations begin and the period investments are held before a listing.
The interview took place last week in Singapore during the DBS Asia Future Forward Conference. CNBC described Granite Asia as backing startups from initial financing through public listings, with activity in both equity and credit. CNBC said Lee was the first woman to reach the top 10 on the Forbes Global 100 VC Midas list. Lee said Granite Asia invested in equity more than 40 times during the previous two years.
Lee reported more funding activity among startups at the earliest stages. Among later-stage companies, she said, productivity gains and faster progress to profitability were both evident. Her remarks covered early fundraising as well as operating results at companies further along in development.
Granite Asia is interested in artificial intelligence for science and in robotics, Lee said. It is also considering business concepts designed for specific audiences within Asia. She cited apps aimed at India and artificial intelligence tools for creating Japanese content as examples of those ideas.
Energy technology, including storage, is another area of interest. Lee linked that focus to the large share of energy that many Asian countries import and to their shift toward renewable power. She said storage becomes important as countries increase their use of renewables.
