Comment by romanhn
20 hours ago
A different perspective: https://x.com/aakashgupta/status/2016375397131420005
TL;DR: What London actually built is Europe’s most efficient farm system for US acquirers. The city does the expensive, risky work of finding founders, funding early rounds, and proving product-market fit. American companies wait until the risk is de-risked, then buy the winners at discounts enabled by London’s shrinking public markets.
London and UK for that matter is great and seeding Startups...high quality universities, entrepreneurialism and attractive tax benefits for angels but for real growth capital it lags massively behind US and has forever.
The Kraken story is one to follow to see if this changes...https://www.british-business-bank.co.uk/news-and-events/news...
"Freetrade built a profitable trading app, got acquired by IG Group for £160M after targeting a £700M valuation"
That is not an accurate recollection of history. Freetrade raised money at a £700 million valuation at the very top of the market when money was plentiful, then, when the money dried up, and they were forced to go from losing money to making money, and they cut all advertising, they were able to just about scrape profitability. At the point of the acquisition, Freetrade either needed more investment to fund more advertising, or get acquired. After 10 years, a dozen rounds of fundraising and capital drying up, £160M is a good exit. Freetrade was significantly overvalued at £700 million.
https://www.thisismoney.co.uk/money/investing/article-142962...
And also, IG Group is a British company, HQ'd in London, traded on the London Stock Exchange. "British stock trading company acquired by British stock trading company" is a pretty boring event.
This.
Also UK contract law is well established and it's easy to find experienced transatlantic lawyers and firms (there's a reason UK lawyers can practice in NY and why both Hong Kong and the Emirate of Dubai kept poaching British judges with contract dispute into their business judiciary).
In most cases when we'd invest in a startup abroad, the founder would often structure their startup as a subsidiary of a US, UK, Singapore (especially Indian/Chinese startups), or Cayman Islands (it's a BOT so you basically get it for free) corporation.
Ironically, this ease of financial access is what makes it difficult to seed a lasting DeepTech startup in the UK because capital would often be deployed to invest in other startup ecosystems. I wrote about this before on HN as well [0][1][2]
[0] - https://news.ycombinator.com/item?id=42763734
There's an argument that some of these takeovers should have been blocked.
> enabled by London’s shrinking public markets
That doesn't seem to be true?
It is - https://www.bloomberg.com/news/articles/2025-09-30/london-dr...
Edit: can't reply
The majority of IPOs in 2025 were in 4 markets - US, China, Hong Kong, India, and South Korea [0]. It's really hard to exit in the LSE currently, and this article is self congratulatory while ignoring major recent (past 2-3 years) mistakes that negatively impacted the entrepreneurship scene in the UK (eg. the revocation of funding for Tech Nation [1] and the ongoing leadership crisis at Monzo [2] which makes no one look good).
[0] - https://www.ey.com/en_pt/insights/ipo/trends
[1] - https://sifted.eu/articles/tech-nation-shutting-down
[2] - https://www.ft.com/content/3405c6f3-931b-4fe3-a169-a9665a132...
No it isn't, London's IPOs in 2025 were mostly towards the end of the year, after that article was written. London ended up about 8th worldwide for issuances in 2025 - https://www.pwc.co.uk/press-room/press-releases/research-com...
Plus, the FTSE 100 returned 25.8% last year. That is not a shrinking market!
EDIT: I'd prefer you not change the subject away from your capital markets claim, but to address the other links:
1. I didn't say London was a top 4 IPO location, just that it's market aren't shrinking.
2. Tech Nation still exists, and still administers that visa. I don't know why you posted a very out of date article about it.
3. It's not ideal that such a high profile company is having issues like that, but hey, stuff happens. OpenAI had a whole goddamn coup and counter-coup happen!
1 reply →
I don't know Aakash Gupta so I can't say if he's lying or just didn't do his research, but I know the IPO figures he cited there are wrong, like very wrong, which puts everything else there in doubt.
Not to mention location of IPO not being all that important. But that's a whole separate thing.
In football we’d call the US “tap-in merchants”.