Though tech valuations have been down for much of the year, many companies have continued to grow by demonstrating a clear path to profitability. For Sasha, this has been a consistent consideration for Australian investors.

“Companies that can show a path to becoming cashflow positive through to profitability in the medium term would certainly benefit from an uplift in valuations against longer-term loss-making accelerated growth companies,” he says.

“Having a clear path to profitability would be a strong ticket to play for an IPO in the current environment.”

Impressively, Australia’s tech sector continues to punch above its weight and compete with globally recognised peer exchanges in Japan and the US. 

“The Australian tech sector is very competitive on a global basis,” Sasha explains.

“There have been 111 tech IPOs on ASX in the past five years. ASX investors have a strong appetite for growth companies, borne out of a long-standing growth mindset from back in the early mining and exploration listings. Australia’s AU$3.4 trillion superannuation pool also underpins continued investment in Australian and international growth companies listing on ASX.”

With a single board for listings, ASX gives tech companies of all sizes access to investors and liquidity. And valuations of its listed tech companies compare favourably with similar-sized and larger companies in the US. 

Sustainability is another area where the Australian tech sector will play an increasingly important role. At Tech Fast 50 2022, Deloitte will launch a new Climate category to recognise the Australian companies harnessing technology to help customers achieve net zero.

Sasha believes that as a market operator, ASX has an important role to play in helping corporate Australia achieve its sustainability goals. But first, they want to lead by example.

“In the 2022-23 financial year, we aim to source 100% renewable energy for ASX, reducing our total carbon emissions by at least 85%,” Sasha says.

“Our target is to achieve net zero Scope 1 and Scope 2 emissions by the 2024-25 financial year.

“For issuers, we provide sustainability education and training. And sustainability disclosures and reporting are a significant area of focus for the ASX Corporate Governance Council, which met recently, especially in light of recent work by international standards bodies in proposing a global baseline of sustainability disclosure.

“We believe every bit helps – be it setting an example for our people, partners or across the market.”