Parveen Dhanda: Tech companies on the cusp of expansion require subsequent capital injections, for which they must showcase significant market engagement alongside the scalability of their product. The assessment of investment viability hinges on the calibre of the product, the proficiency of the executive team, and the degree of ingenuity. Investors evaluate market response, the team’s execution competencies, and the prospects for groundbreaking innovation. These criteria are instrumental in deciding whether a company qualifies for additional funding.

DW: Can you elaborate on the various types of funding available for structuring businesses for listing on the stock exchange, and how do companies decide which funding route to pursue?

PD: Tech companies seeking to list on a stock exchange are presented with a selection of financing alternatives, among them venture capital, private equity, and initial public offerings (IPOs). The selection hinges on various determinants, including the company’s maturity level, funding needs, and long-term goals. 

Venture capital and private equity afford capital injection with the benefit of retaining a degree of executive discretion. 

In contrast, IPOs offer the advantages of enhanced liquidity and market presence but come with the obligations of adhering to regulatory frameworks and withstanding the rigours of public evaluation.

DW: When assessing how a solution meets market demand, what specific factors do investors consider, and how do these factors influence their decision-making process?

Investors conduct rigorous assessments of market demand for a solution by scrutinising the problem-solving effectiveness, distinctive value proposition, size of the target market, competitive environment, and scalability prospects. They assess the team’s comprehension of customer requirements and the capacity to deploy an effective go-to-market strategy. Collectively, these aspects shape investors’ judgments on the solution’s prospects for viability and expansion.

DW: Can you provide insights into the steps a company takes to structure itself for listing on the stock exchange, particularly in the context of Britain’s unicorns?

PD: Tech firms poised to initiate their public offering journey, particularly Britain’s Tech Unicorns, engage in extensive preparatory measures. These include comprehensive financial vetting, strict adherence to regulatory frameworks, robust governance structures and cultivating early stakeholder discussions.  As part of the process, they would enlist the expertise of investment banks, legal counsel, and audit firms to streamline the floatation process and guarantee adherence to regulatory statutes at least two years before an IPO. 

Tech firms poised to initiate their public offering journey, particularly Britain’s Tech Unicorns, engage in extensive preparatory measures.

DW: In the realm of high-potential businesses that may become unicorns in the future, how do investors distinguish between “David and Goliath” businesses, and what strategies can companies employ to showcase their talent and technological potential?

PD: Investors evaluate small and large enterprises using criteria like market potential, competitive positioning, growth prospects, and the skills of the management team. Smaller enterprises, often characterised by their disruptive technologies and agility, must possess a keen insight into market trends, whereas larger companies benefit from their considerable market share and extensive resources. To highlight their capabilities and tech prowess, smaller companies are advised to prioritise product uniqueness, confirm their market fit, forge strategic alliances, and build relationships with investors.

DW: You’re the Chair of Judges for this year’s TIARA Talent Tech Star Awards. What is it about the TIARAs that has made you align yourself to them? 

PD: The TIARA Talent Tech Star Awards recognise excellence and innovation in HR and recruitment technology, which aligns with my passion for advancing technology-driven solutions in the talent management space. Serving as the Chair of Judges allows me to contribute to it by acknowledging and celebrating the achievements of companies driving positive change in the industry.

DW: Why is it important for HR & Recruitment tech providers to enter the Talent Tech Star Awards?

PD: Entering the Talent Tech Star Awards offers HR and recruitment tech providers an opportunity to showcase their innovations, differentiate themselves in a competitive market, and gain industry recognition. It also provides valuable visibility, networking opportunities, and validation from industry experts, which can enhance credibility and attract potential clients and investors.

DW: What do you look for in an entry?

PD: When evaluating entries, I look for innovative solutions that address real-world challenges in HR and recruitment. I assess factors such as innovation, user experience, impact on business outcomes, global scalability, societal impact, and potential for industry disruption. Additionally, I consider the entrant’s track record, market validation, and commitment to advancing the field of talent management through technology.

DW: What top tips would you give an entrant to give them the best chance of winning?

PD: Entrants should focus on clearly articulating the unique value proposition of their solution and demonstrating its tangible benefits to users and businesses. They should provide compelling evidence of market traction, customer success stories, and measurable outcomes. Additionally, entrants should highlight their team’s expertise, commitment to innovation, and vision for the future of HR and recruitment technology. Presentation quality, clarity of messaging, and alignment with the award criteria are also critical factors for success.

The TIARA Talent Tech Star Award entries are open until 12th of April! You can enter here.