Going public—whether through an Initial Public Offering (IPO) or an Initial Coin Offering (ICO)—is one of the biggest moments in a company’s journey. It’s the grand stage where startups move from being founder-driven to becoming publicly accountable to investors.
But with that transition comes a new challenge: managing public investor expectations. In industries like tech and Web3, where volatility is the norm and hype cycles can turn overnight, striking the right balance between transparency, strategy, and storytelling is critical.
The art of managing public market expectations
Public investors aren’t just buying shares or tokens—they’re buying into a vision. Unlike venture capitalists who invest with long-term horizons and deep due diligence, public investors operate in an environment where sentiment, speculation, and market cycles dictate valuations. Managing these expectations means ensuring investors understand both the opportunities and the risks while keeping them engaged beyond short-term price movements.
Take Southeast Asia’s tech IPOs, for example. When Indonesia’s GoTo, the merged entity of Gojek and Tokopedia, went public, it was hailed as a milestone for the region’s digital economy. But as macroeconomic conditions shifted, investor sentiment turned, leading to a stock slump.
What GoTo did well was pivoting to profitability messaging rather than chasing the usual “growth-at-all-costs” narrative. By focusing on clearer monetisation strategies and operational efficiencies, GoTo reassured public investors that it was a long-term bet rather than a speculative tech play. This strategy is a reminder that going public is not just about the listing event but about continuously steering the narrative thereafter.
In Web3, a similar example can be seen with projects like Polygon. Unlike many ICOs that relied on short-term hype, Polygon’s team focused on developer adoption and enterprise partnerships. This long-term commitment helped insulate the project from market volatility, ensuring that investors saw continuous progress even when token prices fluctuated. Managing expectations in Web3 requires more than whitepapers and roadmaps—it demands consistent delivery and clear communication about ecosystem growth.
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Strategies for managing public investor expectations
- Set the right narrative before going public
Before launching an IPO or ICO, companies need to craft a clear and realistic narrative. Investors don’t just want to hear about total addressable market and projected revenue—they want to understand what differentiates a company from its competitors and how it plans to sustain momentum post-listing.
For IPOs, this means balancing growth ambitions with financial discipline. SEA Ltd., the parent company of Shopee and Garena, successfully went public in 2017 by emphasising its leadership in e-commerce and gaming while demonstrating a scalable business model. For Web3 projects, the key is proving real-world utility beyond speculation. Projects like Axie Infinity rode a play-to-earn hype wave but faced significant investor backlash when sustainability issues emerged. Companies need to show how their models work beyond token incentives.
- Emphasise transparency without overpromising
One of the biggest pitfalls for public companies is overpromising on timelines or revenue targets. Investors love ambitious roadmaps, but failing to meet them can be catastrophic for stock or token prices.
A great example of managing this well is Grab. The Southeast Asian superapp, which went public via a SPAC merger, faced a rocky post-listing period. Instead of making grand promises, Grab adopted a strategy of incremental improvements—highlighting steady user growth, service expansion, and cost-cutting initiatives. This approach reassured investors that while profitability might take longer, the fundamentals remained strong.
Web3 projects, on the other hand, often struggle with overhyped promises. Terra’s collapse in 2022 was a stark example of what happens when expectations aren’t managed properly. The lesson? Founders need to be brutally honest about risks and continuously update the community on milestones, even if progress is slower than expected.
- Build a strong public investor relations strategy
Investor relations (IR) isn’t just for traditional finance—it’s crucial for Web3 projects too. For IPOs, having a dedicated IR team to communicate with analysts and institutional investors ensures that expectations are properly managed.
In Web3, DAOs (Decentralised Autonomous Organisations) serve a similar function, though with mixed results. The best DAOs maintain transparent governance, frequent community updates, and clear decision-making processes. A strong example is Uniswap, which actively engages its community on governance proposals while maintaining open dialogue with stakeholders.
For traditional IPOs, SEA Ltd. maintained strong investor communications through earnings calls, market updates, and investor Q&As. This level of engagement helps stabilise investor confidence even during volatile market conditions.
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- Think beyond stock price or token price
The biggest mistake companies make after going public is focusing too much on daily price movements. Public investors want to see long-term value creation, not just short-term spikes.
NVIDIA’s growth story is a prime example. The company didn’t chase short-term gains but instead focused on investing in AI, data centers, and gaming technologies. Over time, this strategy paid off, turning NVIDIA into a trillion-dollar company. Similarly, in Web3, Ethereum has weathered multiple market cycles by consistently upgrading its network and expanding its developer ecosystem. Projects that prioritise real-world adoption over price speculation tend to build stronger investor confidence.
Looking forward: Controlling the narrative
Managing public investors isn’t about suppressing volatility—it’s about owning the narrative. Whether it’s an IPO or an ICO, founders must communicate effectively, deliver on promises, and provide transparency while keeping an eye on long-term fundamentals.
For startups preparing for an IPO, the lesson is clear: set realistic expectations, focus on sustainable growth, and engage with investors proactively. For Web3 projects, the key is consistent execution, clear governance, and demonstrating value beyond token prices. Companies that master these elements don’t just survive the public markets—they thrive, building lasting credibility and investor trust in industries defined by change and volatility.
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