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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Kremlin-linked officials to be banned from entering UK
Roula Khalaf, Editor of the FT, curates a weekly newsletter highlighting key stories, including the UK government's plan to ban Kremlin-linked officials and oligarchs from entering Britain in solidarity with Kyiv. This move broadens exclusion criteria to cover those supporting the Russian government, as the UK prepares to unveil extensive sanctions against Russia aligned with the EU package. Amid fears of a US-Russia peace deal sidelining Europe, UK Prime Minister Starmer and French President Macron...
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