Mind the Tech NY
"The best advice I can give to small companies considering going public is to wait as long as possible"
Mark Green, managing partner at the investment bank Ladenburg Thalmann, was speaking on a panel that discussed the state of the markets and the feasibility of Israeli companies going public.
"The best advice I can give to small companies considering going public is to wait as long as possible," said Mark Green, managing partner at the investment bank Ladenburg Thalmann, during a panel discussion on the state of the markets and the feasibility of Israeli companies going public, particularly on the Nasdaq.
The panel was moderated by Attorney Oded Har-Even, a partner at Sullivan & Worcester, who introduced the firm: "We have five offices worldwide—in Tel Aviv, London, New York, Boston, and Washington. We are a financial firm—we handle everything related to finance," Har-Even said with a smile. "We represent the most Israeli companies on Nasdaq—far more than any other firm. Many people expected this year to start off strong, but the tariff war is affecting global markets, and in Israel, we are also dealing with political conflicts and crises. So today, we will explore what comes next for the markets and, in particular, the impact on Israeli companies. To answer this, we have gathered five experts."
Brian Kinstlinger, a director at Alliance Global Partners, commented: "There is global uncertainty. We had two strong years in the markets, but as Oded said, this year didn't start as well. The situation changes daily, making it difficult for companies and investors to make decisions. There is also regulatory uncertainty regarding U.S. policy—what tariffs will be imposed next? However, Israel has always been a hub for innovation, and I don’t see that changing. In certain sectors, there are great opportunities: quantum computing, space, AI, autonomous vehicles, cloud computing, and cybersecurity. Any technology that is truly innovative will find demand."
When asked whether this is the right time to go public, Kinstlinger replied: "I often see small companies going public before they are ready. There are a few key principles to remember: first, raise money when you can, not when you need to; and second, timing is everything. A common misconception is that companies believe they are worth more than what the market values them at—I’ve never met one that thought otherwise. As a small company, you must understand that you will likely be trading at a discount. You need capital, and it is not always readily available. My advice is to focus on your balance sheet, not just your valuation."
Green added: "Brian is absolutely right. Even in a tough market, a strong company can always go public—the question is timing. We evaluate several factors for a successful IPO: a compelling story, strong management—which, to me, is the most critical factor—solid financials, a CEO and chairman with a strong presence, and, most importantly, not going public too early. Companies should ask themselves: 'Am I going public for the investors, or for the company’s future?' The best advice I can give is to wait as long as possible. If investors are pressuring you, it’s because they want to cash out, not necessarily because it's best for the company. Instead of fixating on valuation, focus on what you will do with the money you raise."
When Har-Even asked whether Nasdaq is still the best option for Israeli companies, Andrew Hall, a senior managing partner at Nasdaq, responded: "Seven of the world’s ten largest companies by market cap are listed on Nasdaq. Around 80-90% of Israeli companies that list in the U.S. choose Nasdaq. One major reason is that we don’t charge a fee for listing additional shares, making it a cost-effective option for smaller companies."
However, Nasdaq has tightened compliance and regulatory requirements in recent years. Hall explained: "That’s true. We had too many companies trading without meeting minimum listing requirements. It doesn’t make sense for a company worth $2 million, struggling to survive, to be listed on Nasdaq. Some companies raised small amounts at low valuations, then ran out of money within a year, becoming a problem for us. It might seem like we’ve become stricter, but we’re really just protecting the integrity of the stock market."
Har-Even then asked, "If the market is so challenging right now, why go public at all?"
Yael Sandler, CFO of Cyabra, an Israeli startup preparing to list on Nasdaq via a SPAC, responded: "The markets are a roller coaster—you must be prepared. You should raise capital when you can, not when you’re desperate. It’s also smart to have a shelf registration in place and to present a clear future roadmap with defined milestones. If you don’t have that, don’t enter the market."
Miri Segal Scharia, founder and CEO of MS-IR LLC, added: "As Yael mentioned, having a strategic plan is crucial. Investors want to see your long-term vision and track how you meet your milestones. It’s always better to underpromise and overdeliver—if you fail to meet expectations, investors will remember for a long time."
She continued: "And one more thing: the trend is your friend. It’s important to embrace market trends and leverage them to your advantage. You must file a prospectus, and when the timing is right, you should seize the opportunity."
Har-Even asked whether there was a significant difference between going public through a SPAC versus a traditional IPO.
Kinstlinger responded: "Ultimately, it doesn’t matter how you go public—what matters is your company’s fundamentals. If they are strong, investors will take notice. An IPO takes longer and costs more, but the core issue is the business itself."
Green agreed: "That’s true. One advantage of a traditional IPO is that it usually attracts more interest from investment bankers and gives you greater control over the process. Some still view SPACs negatively, but at the end of the day, the real question is: are you meeting your own goals and expectations? Have you raised enough capital, and is your balance sheet strong enough?"
Is Israel still a strong brand in the U.S.?
Miri Segal Scharia: "I’ve been working with Israeli tech companies for nearly three decades, and throughout the years, Israel has remained synonymous with innovation. I still believe that’s the case. Some investors may be hesitant about foreign companies in general—due to geographical distance or different regulatory frameworks—but that’s not unique to Israel. From my experience, I haven’t seen investor sentiment toward Israel change, even during the war."
Sandler added: "Even after October 7, I never felt a lack of support from investors. However, companies do have to consider whether to list as Israeli or American. That decision depends on individual circumstances."
Kinstlinger agreed: "Israel has always been a strong and innovative brand. Unlike China, which some investors approach with skepticism, Israel remains a stable and trusted market."
Green concluded: "Being Israeli is an advantage—and companies should market it as such."
