Tech investors hail Chancellor’s measures set to ‘bring talent to the UK’ and boost sector growth

Old Street has long been known as Silicon Roundabout, but many tech firms are now based around King’s Cross - where both YouTube and Google have London bases (Getty)

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Naomi Ackerman @nomiackerman

4 March 2021

Tech investors have hailed the Chancellor's latest measures aimed at helping Britain's innovative firms grow and attract the world’s top tech talent.

Wednesday’s Budget revealed a new "Future Fund: Breakthrough" initiative, which will see the Government invest up to £375 million in taxpayers’ money - matched by private investment - into larger and "highly innovative" British tech firms that are aiming to raise at least £20 million of funding.

It follows on from Rishi Sunak’s Future Fund, which has seen more than £1 billion in Government loans put behind 1,000 UK startups since the pandemic hit.

The Chancellor also said he is planning "ambitious visa reforms" post-Brexit that will see a new fast track visa scheme for the high-skilled workers the UK's tech sector needs.

George Henry, General Partner at Latitude, the breakout fund from LocalGlobe, an early-stage tech investor based in King’s Cross, said: “At a time when countries are shutting their borders it is fantastic to see the UK being so open and confident in demonstrating its credentials as a truly entrepreneurial economy that welcomes the most talented people in the world.

“Making it easier for scaling companies to access talent globally, and for entrepreneurs to come to the UK to start their businesses, will be a great advantage.”

Recruiting giant Hays told the Standard last month that its business in London’s tech sector has already risen above pre-pandemic levels.

Harry Briggs managing partner at OMERS Ventures, the VC arm of a Canadian pension fund, told the Standard: "I think the Future Fund was well-executed with fair terms and was a real help to many startups during tough times.

"The funding climate has massively rebounded recently, so I think it's sensible that the Breakthrough Fund is focusing on deep-tech areas where a longer investment horizon is required. It will be interesting to see the details when they're spelled out."

Julian David, chief executive of trade organisation techUK, has said that the moves will “help us [the tech sector] to continue to play our part in the UK’s COVID-19 response and recovery”.

It came as Deliveroo gave a major boost to Rishi Sunak’s plan to make the UK more attractive for tech IPOs, announcing on Thursday that it has chosen London for a stock market flotation expected to value the company at more than $7 billion.

Deliveroo’s float will follow those of tech companies Moonpig, The Hut Group and, in join several in the pipeline, including Trustpilot, whose IPO is expected to value the company at around £1 billion.

The Government is hoping tech floats will help drive Britain’s recovery. Yesterday the Chancellor endorsed recommendations in Lord Hill's new Listing Review for a relaxation on the UK's stringent stock market rules that are seen as driving technology companies to float in the US, Asia or Amsterdam.

Deliveroo said that it expects to set up its shares "closely in line with the findings of Lord Hill’s UK Listing Review", in an active endorsement of the Chancellor's announcements this week.

The company is planning a dual-class listing of shares in which founder Will Shu’s stock will have greater voting rights than outside shareholders. Deliveroo stressed the dual listed share system would be time limited at three years.

The Chancellor said on Thursday: "It’s fantastic that Deliveroo has taken this decision to list on the London Stock Exchange. It is great news that the next stage of their growth will be on the public markets in the U.K."

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