mandag den 15. maj 2017

Searching for the next British ‘unicorn’

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DAILY BULLETIN
Monday 15 May 2017
Searching for the next British 'unicorn'
by Richard Gill | Equities | 8 mins. to read
Unicorn
Here's an experiment for you to try. Ask 10 random people on the street if they've heard of 'Global Switch' and you'll likely be confronted with a vacant expression. You may well find a similar response if you mention 'Anaplan'. Yet both are 'unicorns', an expression in the tech arena to describe a company that has attracted a valuation in excess of $1 billion.

Both are UK based businesses that have disrupted their way into the portfolios of venture capital firms and family offices around the world. Indeed, these so-called 'informed investors' have been content to pay sums that value these startups at a level sufficient to put them into the FTSE 100 and 250 respectively, yet both remain private businesses.

But still, the UK entrepreneurs that created them belong to a group of innovators that remain far, far behind their US counterparts in terms of volumes. The number of UK spawned unicorns, and their valuations, remains well below those achieved across the pond. Can the UK tech firms really compete for talent and capital in the Brexit era?

 
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