A turning point for the UK capital markets
Today is an incredibly exciting day for Darktrace. A strategically important, independent UK cyber AI technology shows the strength of our R&D and a roadmap to listing in London.
Today is also a significant day for the UK capital markets.
Creating multi-billion pound technology companies is what we are good at in the UK. Like many British tech success stories – the likes of Arm and Illumina – Darktrace was built by mathematicians from the University of Cambridge.
From the start, Invoke’s model has been based on stepping in where there isn’t so much experience: marketing, PR and positioning, setting up operational management teams, creating the go-to market and sales strategies. We have the in-house skills to identify technologies that are on the cusp of success. It goes well beyond writing a cheque and providing office space, though we sometimes do that too. Our expertise is in identifying a winning technology, positioning it for growth, and finding the management team to take it forward. Usually, our involvement is in the early years of a company, after which we hand over to the leadership when the company stands on its own two feet. Darktrace is a prime example of this model.
Out of 1,200 of the fastest growing British tech start-ups of the last 20 years, just 43 have floated on the London Stock Exchange. The rationale behind this decision is one we’re all too familiar with, namely that the UK capital markets don’t understand high growth tech companies, the process here is too challenging and the regulatory requirements in the US are more relaxed.
But whilst many great tech companies have gone on to list on the NASDAQ market, taking with them the chance to reap the tax, employment and geopolitical benefits, Darktrace chose to list right here in London. This is a turning point for the UK’s capital markets and one that I am proud to be part of again.
The UK has the clever bit. We have the incredible research and science base. We have 40% of the top 10 universities in the world. We have a thriving UK tech start-up ecosystem that now leads Europe from an innovation and investment standpoint. Indeed, UK based start-ups attracted £10.5 billion in capital last year alone.
Having homegrown tech companies of strategic national importance list here in London is the last piece of the puzzle, particularly cyber defence businesses like Darktrace that are integral to keeping our organisations, infrastructure and ecosystem secure.
Our pro-tech government understand this too. The Chancellor’s recent UK Listings Review published by Lord Hill comes at a crucial time for our economy, as does the Kalifa Review of UK Fintech and plans for a tech visa that would ease the UK’s inflow of skilled workers. The latter in particular is crucial if we are to continue attracting technology know-how from around the world.
The year ahead is a critical one as we navigate our post-Brexit, post-Covid economy, and having world-leading businesses choose to stay and grow here in the UK will be crucial in strengthening both our economy and our sovereignty. Hopefully, Darktrace is just the beginning.
By Mike Lynch OBE FREng FRS
Entrepreneur and Founder, Invoke Capital