Market Analysis
The British government is under pressure to provide increased support for the software industry, including the implementation of tax incentives and talent visas, according to more than 120 industry leaders.
These leaders are advocating for government intervention to enhance conditions for European software companies, citing Europe's historical challenges in scaling up tech startups compared to the United States.
A policy document from industry body Boardwave, authored by founder Phill Robinson and shared with Britain's technology minister Michele Donelan, emphasizes Europe's struggle to scale software companies successfully. The document reveals that only one software-focused firm, Sage, is among Britain's top 100 publicly-traded businesses, in contrast to the numerous equivalents in the U.S.
Robinson, who established Boardwave in 2022, stresses that mid-sized software companies have received insufficient government attention compared to Big Tech firms and venture-funded startups. The recommendations outlined in the white paper, aimed at future legislation, include expanding talent visa schemes to attract and retain international workers and increasing tax allowances for research and development spending.
Moreover, the report proposes exploring the establishment of a "European NASDAQ" stock exchange. IRIS Software Group, the largest third-party tax filer with the British government, also voices the sentiment that more government support is needed for companies like theirs. Elona Mortimer-Zhika, CEO of IRIS Software Group, highlights the importance of nurturing a community of leaders in the UK and Europe to stay competitive globally.
Key figures supporting these initiatives include Rishi Khosla, CEO of Oaknorth Bank, and Adam Hale, a venture partner at Notion Capital. Robinson reveals that discussions are underway with French and German officials to explore similar support measures for their respective software industries.
Paraphrasing text from "Investing" all rights reserved by the original author.