By Daniel Hunter
Fast growing technology firms need more than a lower IPO minimum, says British entrepreneur.
Technology companies could be allowed to list on the London Stock Exchange for as little as 10% of their business under new proposals being considered by the government.
Currently, tech firms need to float at least 25% of their business on the LSE. But with more firms looking outside the UK for investment, new measures to reduce the minimum float are gaining senior support.
Dan Wagner, serial British entrepreneur says this latest initiative doesn’t go far enough.
“The UK is starting to produce some powerful global technology companies. This is down to a growing culture of innovation," he said.
"But in order for this fledgling sector to flourish and develop, the government needs to put in place a more holistic and proactive support mechanism to stop British entrepreneurs deserting the UK. A key component of this needs to be creating better understanding within the British investment community of the significant value and positive contribution that tech companies are making to the British economy and job creation.”
Dan Wagner was an innovator in cloud computing and online information with his companies Venda and M.A.I.D. but had to prove their success outside of the UK first before they became market leaders. However, as he launches his latest venture — a mobile payment service called mPowa, he says that British trailblazers should be recognised on their home shores to avoid losing them to foreign markets.
Dan continued, “I applaud the government gesture of lowering the IPO minimum to 10% but I am not convinced that it will be sufficient on its own to stimulate growth. Britain is producing some impressive technology enterprises. We need to foster a culture of support to empower them to grow. Policymakers can play a vital role in promoting greater awareness of the long term potential of these innovative enterprises. By promoting the potential of value creation, the Government will be helping to create a more visionary approach to investment.”
Join us on