The economic downturn in 2022 and the high-tech crisis abruptly halted the IPO market. Any company planning to go public understood that under the market conditions they would not receive their proper market valuation. Many instead preferred to wait, opting to raise additional capital, or to sell the company.
The stock market’s steady rise over the past year suggests the IPO wave is set to return. It’s unclear whether this prosperity will last or fade quickly, making it crucial to be ready and seize the window of opportunity. Those who wait too long may find that economic shifts have shut the door to the capital market once again.
The stock market is built on expectations; therefore, investors—both large and small—are looking for companies that are expected to continue growing and consistently increasing their profits. Even if a company currently generates strong profits, if it cannot demonstrate clear potential for future growth, investors will often consider it less attractive. During the recent boom, especially during the COVID period, companies issued shares in high amounts that were detached from their actual revenues and performance, only to see their valuations drop to more realistic levels when the crisis broke out. Today, investors are more discerning and will closely examine current sales volumes and the profits they can expect in the coming years.
For anyone considering an IPO, the keyword is “growth.” Companies must work to generate growth and convince stakeholders that growth will continue at an ever-increasing rate—and that it can withstand challenging times in the global economy. To achieve this, companies need to shift from planning just one or two quarters ahead to engaging in multi-year planning, as public companies do. Fortunately, the world today is different than it was four years ago, and we now have innovative AI tools at our disposal. Organizations that manage to integrate these tools effectively into their sales framework will gain a significant competitive advantage over similar companies.
Consistent growth in sales does not materialize from nothing; rather, it is the result of systematic, efficient work carried out with a structured strategy that begins with the initial Go-To-Market phase. Some salespeople— even the top performers and most valued individuals on the team —are programmed to latch onto one big deal and invest everything in it until it’s closed. However, that alone is not enough. To sustain growth, after one successful deal, you must secure ten more similar deals. This is where systematic work comes into play, building the infrastructure that can continue generating sales, even if a sales leader leaves the company.
Today, AI tools should serve as the foundation for any successful sales organization. AI tools in the sales world can be divided into three categories:
First are tools that enhance the capabilities of salespeople. For example, SDR (Sales Development Representative) teams who make initial contact with potential customers now use AI tools that allow them to differentiate between various types of leads, consolidate information about them, and reach out with tailored and precise responses that guide the progression of the relationship with augmented intelligence.
Next are tools that automate certain human tasks. This category, whose efficiency remains somewhat debatable, includes tools such as chatbots that communicate with potential customers in place of human salespeople, that builds an almost endless pipeline of leads for follow-ups. We are all familiar with their downside, however. When a customer realizes that they are interacting with a non-human entity that does not adequately understand their needs and requests, they may become frustrated with the wasted time and decide not to engage with the company again. Additionally, the overabundance of electronic messages across various channels also undermines the effectiveness of these tools.
Last are tools that can save a salesperson up to 70% of their time. These solutions encompass a range of AI-driven and automated systems that significantly reduce the administrative burden on sales teams. They include organizational software that streamlines routine tasks, transcription tools that capture and summarize key insights from every call or meeting, and robust customer information management platforms that are accessible at any time to relevant team members. Smart calendars and similar scheduling tools further optimize workflows.
While a strong sales framework drives growth, it’s not the only factor. Effective management of existing customers is just as critical to ensure both their retention and the expansion of their purchases across the company’s range of solutions. AI tools can be leveraged here as well to support this critical pillar of growth. Public companies that wisely employ a range of these new technological tools will continue to shine on the stock market for many years to come.
Nir Goldstein is an Operating Partner at the Early Growth fund Greenfield Partners.
