For well over a year, London’s AIM has been touting itself as a good way for tech companies to go public without the high costs of Sarbanes-Oxley compliance. But few VC-backed companies from the United States have made the leap across the pond.
I believe that’s going to change following yesterday’s successful IPO by Blinkx, a video search company co-located in San Francisco and London. Its shares priced at 45 pence and quickly shot up to 60 pence, giving the company a value in excess of 125 million British pounds (about $250 million).
Blinkx didn’t have venture backing, but its successful IPO suggests that other online video-related companies (and there are plenty of VC-backed companies in that space) will seek liquidity on AIM.
With apologies to Malcolm Gladwell, I see Blinkx as the tipping point for AIM.
For more on the pros and cons of listing on AIM, see this Guest Column in Venture Capital Journal by Jeffrey Houle of Greenberg Traurig.