Trachet: 2023 Press Highlights
The UK Tech market, valued at $1tn is the third largest in the world behind the USA and China, with the EU rapidly gaining ground in H2 2023. As our founder Claire Trachet said in an interview with CNBC at the beginning of the year, AI had brought a new wave of excitement in tech, offering opportunities for reinvigorated private investment in a market that had prioritised profitability over growth.
However, as pointed out by Claire in an article in Sifted, the UK tech market runs the risk at present of falling behind other countries in Europe. France especially has seen incredible investment from both private and state sources in recent years. Declining participation in Horizon, cutting R&D relief and various other factors have acted to slow down investment in UK tech compared to other European nations. As Claire and others argued, if the UK is to continue to compete, our government needs to commit resources. Chiefly, it must look to create an entity aimed at answering the question: ‘what will the UK tech sector look like in the next 10 years?’
The hardest part of being a startup founder is knowing when to sell. Tech is no exception. Ensuring you’re always prepared for a sale doesn’t mean being negative, but rather having your business always looking its best. As Claire put it to Raconteur in June, ‘Think of it like a dress rehearsal before the real performance.’ That said, it’s also vital you have a realistic valuation of your company. That valuation needs to be untarnished by ego and avoid the temptation to lean too heavily on what you think the company may be worth down the line.
London Tech Week saw Prime Minister Rishi Sunak pitch the UK as the ‘geographical home of global AI safety regulation’ on June 12. Six days later, at the Viva Tech Conference, French President Macron told CNBC’s Karen Tso, ‘I think we are number one [in AI] in Continental Europe, and we have to accelerate.’ UK Government investment plans aimed at competing with the US and China arguably don’t go far enough. However, an opportunity does exist when it comes to regulation. France, subject to the EU’s recently passed AI Act, is expected to take an ‘aggressive approach’ to enforcing that legislation. The UK has an opportunity to create legislation of its own which is looser. Indeed, the UK Government has already suggested, via a white paper, that it is aiming for a more principles-based, ‘flexible’ approach. This is bound to be more attractive to Tech Startups and their potential investors in this growth market. However, to truly challenge the supremacy of US AI giants, collaboration rather than competition between European Tech Superpowers is required. European powers need to leverage collective resources and foster collaboration to nurture a robust ecosystem, as Claire stated to CNBC here, also in June.
Innovation isn’t just about tech developments either. It applies to every area of a business. C-Suite hires represent a significant cost. They can also take time and effort, with big downsides attached if the wrong choice is made. Fractional C-Suite hiring is an obvious answer. Obtaining the benefit of a wealth of experience in a particular specialisation at a fraction of the cost. With effective use of this dynamic, businesses can react to change, opportunity and growth in an agile and cost-effective manner. They can also benefit from an outside voice, untrammelled by corporate culture or internal political dynamics, able to address what needs to change frankly and quickly.
2024 promises a wealth of opportunity, but also a range of stark challenges. If the UK is to take advantage of the ‘Brexit Opportunity’, the government must be alive to the great potential of Tech. It must also be prepared to work in closer cooperation with other European partners. Tech startups too must be ready to shift entrenched views and embrace innovation in the boardroom as well as in their offering. Agility, responsiveness and flexibility will be the key characteristics of those who enjoy maximum success in the year to come.