Cleo Founder: London Stock Exchange Listing Is ‘Unthinkable’ For UK Tech Companies

Barney Hussey-Yeo, Founder and CEO of Cleo talks about how a recent conversation about the company’s IPO should signal worrying times for the UK’s startup economy. 

 

Recently, I met the Head of Investment Banking at a global bank to discuss Cleo’s long-term future as a public company. The entire conversation assumed a US listing. When I asked about London, they laughed.

As I’ve been vocal about recently, this reaction perfectly encapsulates our challenge. For many on Wall Street, the idea of a UK tech champion choosing the London Stock Exchange is almost unthinkable. That should worry us all.

 

A Declining Market

 

The Financial Times recently reported that fundraising from IPOs in London has dropped to its lowest level in at least 30 years. Just £160 million was raised in the first half of 2025, down 98 per cent from 2021’s highs and below post-financial crisis levels.

These figures reflect London’s evolving role in global equity markets. Britain’s tech sector continues to thrive, producing world-class companies like DeepMind, Arm, and Wise. However, many of these success stories are increasingly looking abroad for their listings. AstraZeneca, the UK’s largest listed company, has explored a potential move to New York. Wise has shifted its primary listing to the US. When companies make these moves, Britain misses out on jobs, tax revenues, and the opportunity to benefit from tomorrow’s global winners.

 

 

Why The US Wins

 

It’s easy to see the Atlantic’s appeal. Valuations are higher, the investor base deeper, and rules more founder-friendly. The S&P 500 trades at much richer multiples than the FTSE 100, making fundraising more attractive.

The US creates an environment that rewards growth. Founders can raise significant capital while maintaining control through super-voting rights. Investors, from retail to institutional, are comfortable backing high-growth companies that may not yet be profitable. The regulatory framework effectively balances disclosure requirements with operational flexibility.

 

A Moment of Choice

 

This trend presents an opportunity for change. Britain can choose to enhance its equity markets to better attract founders, investors and next-generation companies. This requires targeted reforms implemented with urgency. Waiting until 2030, as some Mansion House reforms suggest, means potentially missing opportunities while other financial centers advance their positions.

Here are five steps that would make an immediate difference:

• Abolish stamp duty on UK tech stocks. With no major tech giants listed here, revenue loss is negligible, but the signal would be powerful.
• Accelerate Mansion House reforms. Unlocking pension fund capital for high-growth companies cannot wait another five years.
• Launch tech ISAs. Give savers the opportunity to invest in growth champions rather than traditional savings products, creating wealth for ordinary families while supporting innovation.
• Offer 0% capital gains for founders listing in the UK. Make it more attractive than going abroad.
• Update listing rules to outcompete the US. Allow super-voting rights, introduce flexible disclosure regimes, and make London the easiest place globally to take a growth company public.

 

The Stakes

 

These changes would require minimal Treasury resources while sending a strong message: Britain is committed to remaining a global financial center and supporting its innovators. More importantly, they would help ensure that when British pensioners and ISA holders invest, they can participate in the success of British companies rather than seeing that value creation happen elsewhere.

With thoughtful reforms, London can strengthen its position as a natural home for ambitious, world-class businesses. Britain has the talent, ideas and entrepreneurial energy. The opportunity is there to build on these strengths.

That’s a future worth choosing.