By Jonathan Davies
Technology startups are not reaching their full potential due to a lack of funding in the later stages, according to Simon Segars, chief executive of Arm Holdings.
In an interview with the Financial Times, Mr Segars said the lack of later stage funding is stunting the growth of the UK's tech sector.
The number of tech startups in the UK is on the rise. There are estimated to be around 3,000 tech startups base in London alone, but Simon warned that many tech startup owners are selling up too early because the lack of funding isn't allowing the business to reach its full potential.
There is a pretty healthy angel investment community in the UK, which is great but access to capital to grow to the next stage is much harder to get access to," Segar said.
"I live in California, where there is a very different industry and access to capital is a huge thing."
Simon runs Arm Holding, one of the world's biggest global tech firms, from Cambridge and California. And he also said that entrepreneurship in the UK isn't as good as in Silicon Valley.
"The other thing I see in California is about celebration of success.
"If companies are successful, that is viewed as a really good thing. People who do cash out from these companies, go and do it again. They back other companies. They are looking for opportunities to keep the wool turning. There isn’t quite that same culture here."
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