Tech investor rails against City attitude

A PROMINENT technology investor has criticised financial institutions in the City for failing to take advantage of London’s growing internet startup scene.

Saul Klein, a partner at venture capitalists Index Ventures, yesterday said that although London has most of the ingredients for a vibrant technology sector, startups in the so-called Silicon Roundabout area are prevented from becoming the next Google or Facebook by an unfavourable attitude among fund managers and investment banks.

The government and the London Stock Exchange (LSE) have recently collaborated on a new segment of the market to encourage high growth companies to list in the UK rather than in the US, but Klein said this may not be enough. “We are now very close to having a high growth segment on the LSE so that companies can consider London as an alternative, but the problem is the City,” he said. “The internet is one of the biggest opportunities for every sector of the economy, so why is it that no fund manager or bank has an analyst for this sector?”

His comments came at the launch of Tech London Advocates, a group for helping startups bridge the gap between themselves and the City.