The total value of start-up initial public offerings (IPO) and sales to corporate buyers during 2018 in Europe is running the US very close, new research has said.
According to the Financial Times, European exits (start-ups being bought by corporations) reached $106 billion this year, while in the US it was $136bn. The report also mentions high-profile listings from Spotify, Farfetch, Funding Circle, as well as Adyen and Zoopla.
This information is being described by analysts as ‘remarkable’.
“Investment has also grown four times in the last few years so it’s a kind of natural evolution of what’s been built in the last few years,” said Yoram Wijngaarde, founder of Dealroom, who issued the report.
UK start-up exits hit $39.9bn this year, rising more than three times. Italy, France and Germany have had $14.2bn – combined. Sweden’s overall ratings were boosted by Paypal’s acquisition of iZettle, which ended up being $2.2bn. When it comes to venture capital (VC) investment in start-ups, the UK almost matched last year’s success, raking up $7.9bn.
The Financial Times says the UK hasn’t felt the effects of Brexit in this case, having had the largest number of investment rounds, with 769. France has had 563, and Germany had 520.
“The UK government’s newly-published immigration white paper proposes an end to the current 20,700 cap on high-skilled “Tier 2” migrants. said Jeremy Wright, UK culture secretary.
“Despite Brexit, people are still confident in the UK tech sector,” he said. “I hear a lot about their ability to hire EU workers.”
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