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Corporate Partner Alan Cannon was quoted in an article titled, “Japanese Tech Startups’ Nasdaq IPO Thirst Generates Deal Work for US Law Firms in Japan,” which was published by Law.com International. The article discussed how Japanese startups are more frequently seeking out Nasdaq listings to potentially achieve higher valuations and face less stringent listing standards. Alan explained that Japanese small to midsize companies are attracted to listing on the Nasdaq because it enables them to more easily anticipate if their IPO application will be approved. “The challenge with the exchange process here [in Japan] is that it is a quality review, so if the exchange has reservations about something they essentially have the discretion to delay you indefinitely, whereas, primarily, the U.S. process is a disclosure-based process,” he said. He further noted that, unlike the exchange in Japan, the SEC is not in a position to make value judgements about the riskiness of a business model. Reflecting on this growing trend, Alan emphasized that the size of IPOs by Japanese growth enterprises is likely to increase, as bigger companies are considering potential listings on the Nasdaq.

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