The UK is at risk of losing Europe’s tech crown

{"text":[[{"start":null,"text":"

"}],[{"start":9,"text":"The writer is chairman and co-founder of Founders Forum Group, Founders Factory and Firstminute Capital "}],[{"start":15.82,"text":"One of the most exciting companies in the world right now is Mistral, an artificial intelligence start-up based in Paris. "},{"start":22.149,"text":"In just one year it has gone from an idea in the minds of its founders to a well-funded company able to compete with the likes of OpenAI. "}],[{"start":29.34,"text":"Some of the best international technical talent in the world, including former senior figures from Nvidia and Tesla, are now choosing to start their companies in Paris. "},{"start":37.969,"text":"Last month, the French tech conference VivaTech attracted more than 165,000 visitors — a new record. "}],[{"start":45.64,"text":"These are all signs that the French tech ecosystem has reached an inflection point. "},{"start":50.244,"text":"We are a long way away from the (once referred to) stuffy, insular France of a decade ago, when you could count the number of thrilling start-ups on one hand. "}],[{"start":59.86,"text":"What has changed? "},{"start":61.364,"text":"According to attendees who gathered at a small post-VivaTech event we organise, the answer is not policy but something even more powerful: marketing. "},{"start":69.494,"text":"More specifically, figures from the sector in France credit the youthful President Emmanuel Macron who, since elected in 2017, has been a passionate advocate for the tech ecosystem. "}],[{"start":80.65,"text":"“The most important change we’ve had in French tech is having a young pro-business president elected,” said Xavier Niel, the billionaire telecoms entrepreneur and investor. "},{"start":89.57900000000001,"text":"“It’s not what he actually changed that mattered the most — it’s the image of France that he completely changed. ”"}],[{"start":95.63000000000001,"text":"Niel’s comments led to a discussion between attendees, including the inventor of the World Wide Web Sir Tim Berners-Lee, Meta’s chief AI scientist Yann LeCun, Charles Gorintin (co-founder of Mistral) and Jim Breyer, the US billionaire investor, about the power of politicians to shape the image of tech ecosystems for better or worse. "}],[{"start":114.81,"text":"Their conversation left me wondering about the priorities of the next government in the UK. "},{"start":119.614,"text":"Will the future prime minister be out there shouting that the UK is open for entrepreneurship? "}],[{"start":124.64,"text":"While the UK is still the most vibrant tech ecosystem in Europe, crowns can be lost. "},{"start":129.832,"text":"Some parts of the country’s policy have gone backwards. "},{"start":132.887,"text":"Entrepreneurs’ relief has fallen from a lifetime limit of £10mn under Gordon Brown to £1mn, for example. "},{"start":139.754,"text":"Recent governments have not always had messaging about tech front and centre. "}],[{"start":144.47,"text":"Recently, a senior UK politician told me there were “no votes in tech”. "},{"start":149.037,"text":"Does this evoke confidence in our country’s future as a global leader in the sector? "},{"start":153.292,"text":"Pair that with draconian non-domicile changes, proposed increases in tax on private equity carried interest, onerous worker protection laws and a looming clampdown on skilled immigrants and it’s no wonder we are under threat. "}],[{"start":165.41,"text":"Meanwhile, the French are becoming more founder-friendly. "},{"start":168.852,"text":"They are emulating some of the UK’s pro-entrepreneurship policies, such as the Enterprise Investment Scheme, and going further in other areas. "},{"start":176.332,"text":"Policies like the “apport-cession” rules allow founders to reinvest their capital tax-free within two years. "},{"start":182.037,"text":"In addition, the “pacte Dutreil” can reduce inheritance tax on businesses by up to 75 per cent. "},{"start":188.004,"text":"Holding structures also enable capital protection until dividends are paid out. "},{"start":192.297,"text":"They are also ahead on pension funds investing in private assets, while their stock market is now positioned to compete with the UK’s. "},{"start":199.139,"text":"And friendly policies like the “impatriate” tax regime are more attractive than the UK four-year equivalent. "}],[{"start":205.62,"text":"I would love the next UK prime minister to make tech-friendly policy decisions. "},{"start":210.074,"text":"But just as importantly, I would love them to recognise the huge power of being a champion for the British tech scene on the global stage. "}],[{"start":217.92000000000002,"text":"Labour will announce its tech policies soon and I’m hoping they will be bold, long term and not populist. "},{"start":223.76200000000003,"text":"On the Conservative side, Prime Minister Rishi Sunak has been hamstrung by some of the zealots in his party, but he is clearly fluent in technology. "},{"start":231.42900000000003,"text":"He could use this skill to take the UK’s innovators to the next level and turn the country into a global talent magnet. "},{"start":237.29700000000003,"text":"He has already had marked success with the UK AI Summit. "},{"start":240.71400000000003,"text":"Britain’s entrepreneurs have a lot of ideas but the country needs to build a stronger single voice. "}],[{"start":246.08,"text":"London Tech Week takes place this week and we are hosting our annual Founders Forum Global, an event that brings many of the world’s best founders to the UK. "},{"start":254.38400000000001,"text":"It might be an opportunity for French and UK tech communities to deepen their co-operation and partnership. "},{"start":259.652,"text":"But I hope that politicians from both sides of the aisle will be inspired to think about how to amplify the work of the companies featured. "}],[{"start":266.84000000000003,"text":"I consider myself one of the UK’s biggest cheerleaders. "},{"start":270.319,"text":"As an immigrant who has chosen to live here for more than 45 years, I want to see this country continue to prosper. "},{"start":276.41200000000003,"text":"In my opinion, it is still the best place in Europe to start a technology business. "},{"start":280.96700000000004,"text":"Even so, the winds of change are menacing. "},{"start":283.809,"text":"We cannot be complacent. "}],[{"start":285.38000000000005,"text":""}]],"url":"https://creatives.ftacademy.cn/album/158372-1718085093.mp3"}