British Fintech Wise said this week that it would move his main list from London to New York and join a growing list of companies that sniff on the London stock exchange.
The British chip designer opted for a New York IPO in 2023, while in November the LSE ate the LSE for Amsterdam to take away.
The Sweden Klarna has confirmed the plans to go to the stock exchange in New York and met the footsteps of the Tech Darling Spotify, based in Stockholm, which was listed in Nyse in 2018.
The draw? Larger reviews, deeper capital and more appetite for risk.
“The US economy continues to work much better than the EU, and the ratings are simply higher for companies that can list there,” said Victor Basta, Managing Partner at Artis Partners, to TNW.
The numbers support him. The NYSE has a market capitalization of around 27 trillion dollars -compared to only 3.5 trillion dollars for the LSE.
These scale and the investor-pushed deeply into the attraction of the armor to list over the pond. According to CEO, Wise followed for the same reason Kristo Kääumann.
Käärmann said that the step would “enable our products to be the world's biggest market chance for our products today and enable better access to the world's deepest and most liquidated capital market.“”
In addition to the growth potential, US investors are also known to take larger bets on technology companies in the growth stage.
“US investors understand the entire strategy of the revenue-before profit strategy,” said Andrey Korchak, a British serial entrepreneur, to TNW. “In Europe, they often want to see income from day one.”
This risk aversion, Korchak believes, limits the growth of startups.
“Europe just doesn't have the same density of Tech inumes,” he said. “And when startups hit this billion dollar brand here, most people still prefer in the USA.”
Sean Reddington, co -founder of the British technology company Thrive, fears that Wise's New York list will deepen the problems.
“Wise changed a worrying trend in the USA,” he said. “It threatens a” brain drain “of capital and talent, which makes it more difficult for VCS of the growth stage to invest in Great Britain without a clear US exit plan in Great Britain.”
He called for urgent government measures, including the provision of “sensible incentives” for technology companies in Great Britain.
“If the ultimate reward of a domestic IPO is reduced, it pushes more companies to consider, move around or list it overseas,” he said.
Europe's startup fights will be a hot topic TNW conferencewhich takes place on June 19 to 20 in Amsterdam. Tickets for the event are now for sale – Use the code TNWXMedia2025 at the cash register to get 30%.
