Category: London Stock Exchange

Four Reasons to Watch UK Equities

The following content is sponsored by BlackRock.

Over the past several years, UK equities have traded at a relative discount compared to other developed markets. This was largely due to ongoing Brexit negotiations, where uncertainty around trade deals and other legislation created significant headwinds.

Fast forward to today, and much of the uncertainty has passed. Does this mean it’s time to invest in the UK?

Looking Ahead

This infographic from BlackRock covers four reasons for why investors should consider an allocation to UK equities.

UK Equities infographic

So, why should investors consider an allocation to UK equities?

#1: The UK Market Is Not the UK Economy

The UK equity market is represented by many leading multinational companies from a variety of sectors.

For example, consider the FTSE All-Share Index, which contains over 600 companies listed on the London Stock Exchange. As of March 31, 2021, 72.5% of these companies’ total revenue was derived from outside of the UK.

A large share of overseas revenue provides investors with exposure to a range of global themes, where outcomes are not dictated by the UK economy itself.

#2: Business Activity is Ramping Up

The confirmation of a Brexit trade deal has provided UK companies with clarity around the rules of engagement, as well as the confidence to look ahead.

As a result, the UK has been ranked as the most attractive place in Europe for future investment.

CountryWhich country do you believe will be
the most attractive for foreign investment in 2021?
(% (Read more...)

Why Draper Esprit doubled down on its status as a publicly listed VC

We cover a lot of venture capital news here at TechCrunch. New funds, partner changes, the funding rounds themselves — the list is long. Lately, we’ve had to touch on rolling funds, solo GPs and a faster-than-ever investing cadence that has rewritten the rules of venture investing. Gone are the days when investors can take weeks, let alone months, to get into a hot deal in today’s turbocharged private markets.

But there’s another venture capital trend worth discussing: venture capital firms going public. This July, for example, London-based Forward Partners went public on the AIM, a sub-market of the well-known London Stock Exchange. Augmentum Fintech is another example of a London-listed venture capital firm. The investing group focuses on European fintech.

Most recently, Draper Esprit, another British venture capital firm, moved from the AIM to the LSE proper, with a secondary listing on Euronext Dublin. TechCrunch has cited Esprit partners in our explorations of the European venture capital scene in the past, especially in our regular digs through the startup hub’s numbers.

To understand why Draper Esprit not only decided to stay public but doubled down on its structure by moving to the main boards in London and Dublin, we got on the horn with the firm’s co-founder, Stuart Chapman. What follows is an edited and condensed transcript of our call. Coming up, The Exchange has analysis and further interviews about whether the trend of floating venture capital firms may spread, and why other investing groups opted (Read more...)

A Decade of Impact: Wise goes Public – A Direct Win for the European Ecosystem

This post is by Precious Oyelade from Seedcamp

We talk often at Seedcamp about the true impact of startups in the jobs they create and the economic mobility they enable. No more is that true than for Wise (formerly TransferWise) who today, 10 years after we first invested, take the company public with the first direct listing of a technology company on the London Stock Exchange. 

This is a huge milestone for Taavet and Kristo, the team, Estonia, for Europe, for us at Seedcamp, and for the future. Ex-Wisers are fast becoming some of the most sought-after employees and the next generation of entrepreneurs powering the European tech ecosystem. 

A lot can happen in 10 years, and we remember all too well that infamous moment when Kristo and Taavet stood on stage at Seedcamp Week London in 2011 and set money on fire to demonstrate what, in their eyes, was happening every time people tried to transfer money abroad. Their compelling storytelling, clear mission and genuine desire to transform the lives of their customers has been a constant from the beginning. We see it today in the transparency with which Kristo has shared his personal journey and learnings from the listing on Twitter; how the team has welcomed customers to become shareholders as part of OwnWise and by the incredible milestone of helping over 10 million people worldwide move £5 billion across borders each month. 

From two Estonian co-founders in 2011, to over 2400 Wisers from over 90 nationalities in 2021, we’re proud to have played a part (Read more...)

Nigeria’s IROKO plans to go public on the London Stock Exchange AIM in 2022

IROKO, a Nigerian-based media company, could file to go public in the next 12 months on the London Stock Exchange (LSE) Alternative Investment Market.

Founded by Jason Njoku and Bastian Gotter in 2011, IROKO boasts the largest online catalog of Nollywood film content globally.

According to this report, the media company will raise between $20 million and $30 million, valuing the company at $80 million to $100 million

In October 2019, Njoku hinted that the company was going public either on the London Stock Exchange or a local exchange on the continent. However, the CEO kept mute about the whole process the following year due to how tumultuous it was for the company.

In 2020, the company had plans to increase its average revenue per user (ARPU) in Africa for its video-on-demand service, iROKOtv, from $7-8 to $20-25. Through the first four months of the year, it seemed IROKO was set to achieve that. But amid pandemic-induced lockdown fears, consumer discretionary spending reduced in Nigeria and other African markets. What followed was a 70% drop in subscription numbers, and in May, 28% of the company’s staff went on unpaid leave. But unlike the numbers iROKOtv local markets put up, its international subscribers grew 200% during the lockdown, hitting a $25-30 ARPU range.

However, more bad news came in August when the CEO announced that the company was laying off 150 people. Njoku cited the naira devaluation, regulatory (Read more...)