Leading online review platform Trustpilot – whose software allows customers to review businesses – is reportedly considering a flotation on the London Stock Exchange in Q1 2021.
The Copenhagen-based company is currently in discussions with several major investment banks. A public listing in London would further enhance the City’s reputation as a home for world-leading tech firms, particularly during a time when the UK’s financial sector is struggling due to the potential impacts of Brexit.
Trustpilot Model
Founded in 2007, Trustpilot generates over £75m in annual revenue through its subscription-focused business model. This could result in the company achieving ‘unicorn’ status on flotation, defined as a firm worth more than $1bn or £775m.
With over 700 employees across offices in Europe, the US and Australia, Trustpilot could rapidly expand its business following a public flotation. Additionally, the move would likely be profitable for current backers, including Sunley House Capital Management and Draper Esprit, who provided more than £40m in funding during a Series E round of investment last year.
Brit Tim Weller, who has experience leading companies through IPOs, is at the helm of Trustpilot’s reviews site, and the company also appointed Angela Seymour-Jackson, a director of Esure, to its board in 2019.
Fake Reviews And System Abuse
Despite its success, Trustpilot has faced challenges in the past, particularly from criticism that it was not doing enough to prevent fake reviews on the site. However, the company has since implemented measures to combat this issue, such as introducing a feature that allows users to see how many complaints have been removed from a specific company.