Capital Issues
Think tank: Onward
Author(s): Various authors
October 14, 2024
This report from UK think tank Onward looks at reforming the UK’s capital markets to boost science and tech.
The UK’s capital markets are in trouble. Last year 76 firms delisted from AIM, London’s growth market. Scores of leaders of the UK’s most vibrant companies have publicly stated that they would not consider listing on London’s exchanges. Low liquidity, diminished investor confidence, and a shrinking pool of capital available are compounding the exodus.
Capital Issues, Onward’s report produced jointly with the Tony Blair Institute, argues that the UK’s markets are “not fit for purpose” and could extinguish Britain’s potential to be the home of the next wave of world-leading science and tech companies, hindering growth prospects for decades to come. Bold reform is required for the UK to remain a top financial centre, support the leading companies of the future and drive stronger growth.
The potential prize is huge. Europe now has over 250 start-ups generating $100-500 million in revenue, almost half of which are UK-based. If London plays its cards right, it can become the place of choice for this next generation of scaling European tech companies, while providing a platform and financing pathway for the UK’s first trillion-dollar tech company.
