The software darling of Australia's tech scene, Atlassian, looks bound for a stock market debut in the United States.
The Sydney-based company, founded in 2002 by co-chief executives Scott Farquhar and Mike Cannon-Brookes, has reportedly filed documents for an IPO in the US later in 2015.
While Atlassian on Monday refused to comment on the speculation, a stock market float has long been predicted for the tech heavyweight which counts Facebook and eBay as clients.
The Wall St Journal reported that Atlassian, estimated to be worth about $US3.3 billion ($A4.70 billion), filed a prospectus under the Jumpstart Our Business Startups Act in the US, which allows smaller companies to submit IPO paperwork confidentially.
It's a seemingly inevitable blow for the local tech sector, Fishburners general manager Murray Hurps said.
"You can't be angry at Atlassian for doing things in other countries because they're this kind of global company going after a huge market using technology that wasn't possible before ... and they should be doing that," he told AAP on Monday.
"It's up to Australia and people in Australia to turn us into a place that people choose rather than trying to stop them at the gates and stop them exiting."
Atlassian has offices in Silicon Valley but is headquartered in Sydney, where it employs about 700 people, a quarter of whom are overseas talent recruited on 457 visas.
It's known for software products designed for programmers and project managers, such as tracking software program JIRA and collaboration platform Convergence, and counts Panasonic, CNN, and Toyota among its 50,000 plus customers.
The company was valued at $US3.3 billion in 2014 after US venture capitalist firms T.Rowe Price and Dragoneer Investment paid $US150 million for a 4.5 per cent stake.
A listing on the US markets would be closely watched.
"They have a fantastic reputation overseas as well, they're not just in our little bubble," Mr Hurps said.
However the move would reinforce the lack of appeal for homegrown successes to stay in Australia, he said, pointing to a recent survey's findings which showed that 12 per cent of local startups wanted to relocate overseas in the next year, while 27 per cent would seek offshore funding.
"That's terrifying that 12 per cent, skimming the top of everything that's possible in Australia and losing all of it," Mr Hurps said.
Atlassian founders Farquhar and Cannon-Brookes, have long lobbied governments to foster a stronger tech culture.
Mr Hurps said that while their surge onto the world stage was inspiring for local entrepreneurs, it also dented confidence in the local ecosystem's investment and growth opportunities.
"You need senior startups to stick around for longer and help move the environment into the right direction," he said.
"If everyone's taking the easy option, then it become the only option."
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