Britain must “roll out the red carpet” for pioneering tech companies to ensure they stay in the UK and drive growth, a leading venture capital investor has urged.
Suranga Chandratillake, a partner at technology investment firm Balderton Capital, says he fears that startups that are bought by foreign predators or listed overseas will not be left in British hands.
“That will be dangerous and a huge embarrassment,” said Chandratillake, whose company has invested in cybersecurity firm Darktrace, e-tailer THG and banking app group Revolut. “We have to create an environment where at least some of them stay here forever.”
The city suffered a blow when Arm Holdings, a Cambridge microchip maker, listed in New York last year. More recently, Darktrace, also based in Cambridge, agreed to be acquired by US private equity group Thoma Bravo.
With the tax burden approaching its highest level since the 1940s, the effort would be critical to both Labor and Conservative plans to raise more money, he argued, adding: “Both parties say we are going to have more growth.” Guess where that will come from?
Boosting growth: Britain must ‘roll out the red carpet’ for pioneering tech companies
Balderton says it has raised £3.6bn to invest in technology companies in the UK and the continent and has backed more than 250 companies.
But Chandratillake said it wasn’t just about money, adding: “We are also driven by a level of patriotism.” We would like to see many more of our companies listed here.’