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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Keir Starmer and the Cummings consensus
In Unlock the Editor’s Digest for free, Roula Khalaf selects her favorite stories, including Dominic Cummings' vindication by Keir Starmer's alignment with Tory predecessors on civil service failures and planning reforms, highlighting areas of consensus between Labour and the Tories. Despite shared goals, the challenge lies in delivering reforms effectively, as seen in the slow progress and lack of confidence in Starmer's ability to take on the political machine and drive change through, potentially leading...
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