Europe is facing an innovation crisis, with a lack of venture capital investment hindering the growth of new technologies and companies. Former ECB President Mario Draghi emphasized the need for more VC funding to support high-risk projects, as Europe lags behind the US in R&D spending. While the UK has a strong start-up scene and is the largest VC market in Europe, there are concerns about declining investment in early-stage firms and challenges in the capital markets. Recommendations include increasing funding for growth-focused venture funds and reducing regulatory burdens on asset managers and listed companies. Although the UK has made progress in supporting innovation through tax breaks and funding mechanisms, there are still challenges in attracting entrepreneurs due to low equity valuations. The UK struggles with low valuations for tech businesses, leading to takeovers and a lack of British tech firms in the FTSE 100. Industrial policy experts suggest emulating the French model of family-ownership to retain control as businesses scale up. Another proposal focuses on incentivizing business leaders to choose PLC entities over private equity-backed concerns for long-term value creation.
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This Is, Officially, the 3rd Priciest Stock Market in Over 150 Years — and There's No Mistaking What Comes Next for Stocks, Based on History
Investors have faced significant volatility in the first seven months of the year, highlighted by the S&P 500's steepest two-day decline since 1950 and the Nasdaq entering a bear market for the first time in three years. However, since April 8, both indexes have rebounded to record highs, while the Dow Jones Industrial Average approaches its first all-time high since December, suggesting a strong bull market despite historical caution. Want More Context? 🔎
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