Xavier Rolet, chief executive officer of CEO of London Stock Exchange said that startup companies in United Kingdom need support to scale. In order to make a leap from SME into a large cap business.
CEO Rolet wrote an article for Daily Telegraph, saying there is a real revolution that will determine changes of British business forever. He wrote, "I'm talking about the start-up revolution. In 2014, a record 500,000 new businesses were started in Britain - a staggering number and far ahead of the total in any other European economy."
He also emphasized how the startup companies have potential to transfor the United Kingdom, "In 2015, the number of new businesses launched in this country was higher still, more than 600,000 - bringing the five-year total to 2.6m. At a time of global uncertainty and in the type of low interest rate, low-growth environment in which large companies struggle to make any headway, these new, nimble, innovative start-ups have the potential to transform Britain."
However the France-born chief said that too often startup companies run out of steam, making them unable to taking further step. He said that in Britain annually more than five hundred thousands companies were launched. The next task is to provide an environment to support the startups to upgrade their scale into large-cap companies, from million-pound ventures to billionpound superstars.
Meanwhile in the fintech startup field, British financial authorities in 2013 opened door for a new type of bank entering the market. Bank of England has simplified its process to setting up new banks with two-step process and lower capital requirements.
As a result of this simplified process, financial tech startup companies have grown and UK has now seen the rise of new digital bank with four contenders: Atom, Mondo, Starling and Tandem.
Afterward, in the latest development British central bank reported a visible change in the market as quoted by Tech World, "We expect this trend to continue over the next few years, particularly where there is a gap in the market – whether it be the service they provide, the customers they target, the products they sell or the technology they use."
Aligned with Xavier Rolet's view, Ireland have also paid attention to tech startups. Irish Times reported that one of the big-four in Irish bank, Ulster Bank has recently launched Entrepreneurial Spark in Belfast to boost startup companies development. The place is offering free space for up to 80 startups, providing hands-on mentoring, bootcamp, and free program of advice, support and funding clinics.
CEO Xavier Rolet said that as startup companies began to expand in UK, the favorable environment is required to support them growing. Therefore, those startups will be able to upscale into large cap companies.
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