Finance and technology go hand in hand in creating successful business environments, as the venture capitalists and tech entrepreneurs of Silicon Valley will testify.
With the UK losing trading business to the EU this year due to the lack of a services Brexit agreement, there is pressure to make London a global Spac centre, while today’s Kalifa report on UK fintech aims to maintain Britain’s advantage in combining technology with financial services.
The review, which was launched by chancellor Rishi Sunak at the Budget last March and has been led by former Worldpay chief executive Ron Kalifa, is one of a series commissioned by the government to help strengthen the UK’s position in finance and technology.
Investment is one key point in a five-point plan, with US and Silicon Valley-style funding and entrepreneurial incentives emphasised. The review calls for an expansion of R&D tax credits, the Enterprise Investment Scheme and Venture Capital Trusts. A £1bn “Fintech Growth Fund” is suggested, along with improvements to the listing environment through less of a free float being allowed, along with dual-class shares and the relaxation of pre-emption rights. A family of fintech indices would enhance the sector’s visibility, it advises. Such steps are seen as urgent, with some of Britain’s most promising tech businesses considering US stock market listings.
Dan Thomas and Nicholas Megaw report a new visa has also been recommended as part of the “digital big bang” needed, enabling access to global talent for tech businesses. The chancellor Rishi Sunak told the FT today he was planning just such a move next week.
Crypto also gets a mention, with the review saying “the UK has the potential to be a leading global centre for the issuance, clearing, settlement, trading and exchange of crypto and digital assets”.
One note of caution comes with the role of the Competition and Markets Authority, with consolidation seen as a necessity to ensure growth of the sector.
“Success brings scale but as some businesses thrive, others inevitably will fail. Some consolidation will therefore be critical in facilitating the growth that UK fintechs need in order to become global champions,” it said.
The Internet of (Five) Things
1. US removes roadblock to digital tax
US Treasury secretary Janet Yellen has told G20 finance ministers that Washington will drop a contentious part of its proposal for reform of global digital taxation rules that had been the main stumbling block to an agreement. The move could unlock long-stalled multilateral negotiations at the OECD.
2. Lucid takes on Tesla
Two years ago, Elon Musk claimed there was no electric car that could compete with Tesla’s Model S. At the time, it was true. But now, Lucid Motors says the wait for a model to match it is almost over. Richard Waters says Lucid’s fundraising highlights how plentiful capital is for new companies — but when times change on Wall Street, many investors may no longer have the patience to go along for the ride.
3. Twitter looks at monetising tweets
Twitter unveiled a range of potential features on Thursday, including tools that would allow users to charge their followers for exclusive content. The social media platform said it was exploring a Super Follows feature, where users could choose to pay certain accounts a subscription fee, as well as tools for tipping.
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4. Airbnb bouncing back, DoorDash triples revenues
A Covid collapse in tourism to cities was partly offset at the end of last year by more people travelling to rural destinations, said Airbnb, as it boasted of its “resilience” in its first earnings as a public company. Fourth-quarter revenues were $859m, comfortably higher than analysts’ expectations of $747m. By Dash’s maiden earnings showed it more than tripled its revenues in the final months of last year, but suggested that demand for home-delivered food would moderate in 2021.
5. Zoom fatigue is real, says study
Researchers at Silicon Valley’s Stanford University have confirmed what millions of remote workers already knew: “Zoom fatigue” causes greater stress than meeting in real life because of the “non-verbal overload” of endless video calls.
Tech tools — AirSelfie AirPix drone
Things have moved on a bit since the selfie-stick was, indeed, a long pole, writes Jonathan Margolis. The latest take isn’t a stick at all, but a pocket-sized drone armed with a camera. AirSelfie’s super-light 52g AirPix (€119.95)) succeeds where other attempts at the technology have stuttered. It packs a 12 megapixel, full-HD camera for stills and video and it works wonderfully. You can steer it using your phone and it can be set to follow you around, by locking on to your face. Best of all, it contains a sensor that means you can control it by gesture.