Key Takeaways:
- The Financial Conduct Authority is expected to announce proposals to reform and streamline the UK’s listing rules.
- The reforms are likely to provide a boost for the country’s important tech sector by allowing companies easier access to public markets in London.
- However, more effective listing rules will be fruitless unless investors have the analyst coverage post-listing to help allocate capital efficiently.
London, UK – The UK’s tech sector could receive a much-needed boost as the Financial Conduct Authority is expected to announce proposals to reform and streamline the country’s listing rules. This move is expected to create a more dynamic and competitive capital market in Britain, making it easier for companies to access public markets in London.
Haakon Overli, General Partner at Dawn Capital, one of Europe’s leading specialist B2B software investors, believes that the proposed reforms will provide a much-needed boost for the country’s important tech sector. He said, “More effective listing rules will help, but they will be fruitless unless investors have the analyst coverage post-listing to help allocate capital efficiently. And pre-listing capital is needed to support these companies while they grow and scale in the first place. Now the Government must double down on its promises to help DC pension funds invest in early-stage companies to provide much-needed capital for growth and further look at how to best provide information on companies post-listing.”
Streamlining the UK’s listing rules is a positive step towards creating a more dynamic and competitive capital market here in Britain. These reforms will allow for ‘local heroes’ to list in London rather than overseas. However, these reforms are just the first step in ensuring that the UK’s tech sector remains competitive on the global stage.
The Need for Analyst Coverage
More effective listing rules will only be the first step in boosting the country’s tech sector. It is also essential to have analyst coverage post-listing to help allocate capital efficiently. Analysts provide investors with information and analysis that can help them make informed decisions about where to invest their money. Without this coverage, investors may not have access to all the information they need to make the best decisions about where to allocate their capital.
The Need for Pre-Listing Capital
Pre-listing capital is also necessary to support companies as they grow and scale. Startups often require significant funding to get off the ground, and access to capital is essential to support their growth. However, securing this funding can be challenging, especially for early-stage companies. Therefore, it is essential that the government continues to provide support to early-stage companies and provides much-needed capital for growth.
Dawn Capital: Europe’s Leading Specialist B2B Software Investor
Dawn Capital is one of Europe’s leading specialist B2B software investors, with assets under management of $1.5 billion. The firm partners with innovative companies that, through exceptional teams, products, and business models, can become category-defining, global titans. Dawn is an early-stage investor, backing companies at Series A and B, and continuing to fund the best-performing from growth rounds through to exit.
Dawn’s roster of investments includes Mimecast (now NASDAQ-listed with a $3.0 billion market cap), iZettle (sold to PayPal for $2.2 billion cash), Collibra, Showpad, Dataiku, Templafy, Soldo, Quantexa, and Tink, amongst others.
Conclusion
The proposed reforms to streamline the UK’s listing rules are a positive step towards creating a more dynamic and competitive capital market here in Britain. These reforms will allow companies easier access to public markets in London, and encourage local heroes to list here rather than overseas. However, more effective listing rules will only be the first step in ensuring that the UK’s tech sector remains competitive on the global stage
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