BRITAIN is losing out to the US as technology firms choose to float in New York due to a lack of communication between startups and the City, says the chair of payday lending firm Wonga.
Chairman Robin Klein said that despite the UK’s booming internet economy, “the door to London’s IPO market is shut tight for tech companies”. He called for policy changes to encourage businesses to list in London, following speculation that UK firms including Wonga will shun a UK flotation and list on the Nasdaq.
Writing for investor fund Index Venture Management, Klein proposed a series of measures including reducing the minimum public float requirement from 25 per cent of a company to 10 per cent and revoking stamp duty on shares.
He also called for a change in the culture of tech startups, saying a listing is “not an exit”.