Jordan Taylor-Bartels’ Post

🚀🇬🇧 The UK tech startup scene is buzzing, and we're right here in the midst of it all! As a leading accountancy practice specialising in this dynamic niche, we're continually inspired by the innovation and resilience we witness every day. Startups aren't just about creating new tech; they're about disrupting norms, challenging the status quo, and driving change. They're about taking calculated risks and transforming industries. The UK is home to some of the world's most exciting tech startups, from fintech disruptors to AI innovators. Companies like Zego, Habito and DeepMind As an accountancy firm specialising in tech startups, we understand the unique challenges you face. From navigating the complexities of R&D tax credits to managing cash flow during rapid growth, we're here to provide not just accounting expertise, but strategic guidance to help you thrive. The UK government is highly supportive of the tech scene, with initiatives such as the SEIS and EIS schemes providing significant tax incentives for investors. There's never been a better time to be a tech startup in the UK! Innovators, disruptors, game-changers - we salute you! Here's to the UK tech startups, making waves globally and shaping our future. As your accountancy/finance partner, we're excited to support you on this incredible journey. 🌟💼🚀 #UKTech #Startups #Innovation #Disruption #AccountingForStartups

Israeli tech startups flock to US amid uncertainty at home It's concerning to see many Israeli startups contemplate relocating out of Israel. Should they decide to explore incorporation outside Israel, I highly recommend considering Canada as a potential destination, in addition to the US. The Canadian capital markets are dynamic, liquid, and provide startups with access to risk capital. They also offer a chance to gain both institutional and retail momentum at a more competitive market capitalization. We have extensive experience working with Israeli companies and assisting them in accessing the Canadian capital markets. As these companies grow and mature, a subsequent move to the US market might be a logical next step. It's crucial to base decisions on thorough research and understanding rather than simply following a prevailing trend. Please reach out for further insights. #StartUpRelocation #CanadianCapital #BusinessGrowth #InformedDecisions" https://lnkd.in/gyQpPhkv

Fewer fintech startups - have you noticed? Recently, I attended several large European startup conferences. I was surprised to see very few fintech startups there. This trend isn't just at conferences but also in accelerators and similar places. There are much fewer new fintech startups now compared to recent years. I think the main reason is the economy (we're in a period of high-interest rates), but there could be other reasons too (such as regulation). Here are my thoughts on why this is happening: - Tighter Regulations: The financial sector has a lot of regulations, and every year, those regulations get tougher for fintech companies. This makes it more expensive to comply with all the regulations. - High-Interest Rates: We are in an era where borrowing money is expensive. As interest rates rise, it becomes more costly for startups to get funding. Fintech startups tend to need more money than other types of startups, so high-interest rates hit them harder. - Dependence on Interest Rates: Many fintech startups, especially those in lending and wealth management, rely heavily on stable interest rates. The current economic situation makes their future projections uncertain, increasing their risks. - Less Venture Capital: The above also means that there is less venture capital available and investors are more cautious in unstable economic times. High-interest rates offer good returns with little risk in more conservative investments, so fewer investors are willing to take a chance on risky fintech startups that need more money than the average startup. - Market Saturation: Over the past decade, the fintech market has grown significantly and become very crowded. This makes it harder for new fintech startups to enter the market because there is more competition for customers and investors. What do you think? Do you see changes? #fintech #startups #TNW

Berliner fintech re:cap secures €13.5 Million in funding to fuel expansion in EU Berliner #fintech #Recap has successfully raised €13.5 million in a recent funding round. The financing platform for startups aims to use this fresh capital to expand into new markets in Europe and the USA, with the help of new investors gaining access to the platform. Paul Becker, co-founder and CEO of Recap, leads the company with a vision for international expansion. Becker announced plans to double the team size to 80 employees by the end of next year, focusing heavily on data and technology sectors, along with investments in expansion and marketing. Key Investors Recap’s latest funding round reflects the growing trend of increased investor interest in German fintechs. In the first four months of this year alone, German fintechs raised €408 million across 32 financing rounds, a 34% increase compared to the previous year, according to Barkow Consulting GmbH. Recap operates as a marketplace where startups seeking capital can register. Unlike traditional financing platforms, Recap does not invest its own equity but facilitates loans through partnerships, notably with its British partner bank HSBC. Over 2,000 companies have registered on the platform, with 500 actively using Recap's software or financing options. To date, the company has facilitated a substantial amount in the high double-digit millions. The startup is currently active in Germany and the Netherlands and is now opening its marketplace to other investors. These investors can register on the platform for a licensing fee and seek investment opportunities. Recap prides itself on real-time liquidity assessment of startups, thanks to the integration of account information directly into their platform. This feature allows investors to monitor their portfolio companies continuously and in real-time, ensuring potential issues are identified promptly. The article on Handelsblatt in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

Something to munch on - The Times piece uses data from PitchBook and Carta to quantify the scale of the contagion. PitchBook estimated that 3,200 private-venture-backed companies went bankrupt in 2023, which had collectively raised more than $27B in venture funding. Carta, meanwhile, said 87 startup clients that had raised more than $10M went defunct in 2023, which was double the amount from the year prior. (quoted from the article) This is not to say that tech investors and entrepreneurs have fully glossed over the state of things. Key players have kept their eyes peeled on macro rates, bank collapses, consumer sentiment, and other core indicators to chart a path forward. Rather, the issue is that the scale and quantity of failure has been underappreciated and underdiscussed, leaving investors and entrepreneurs underinformed about the appropriate path forward. https://lnkd.in/gUdEfxEY

The end of the financial year is a pivotal moment for all businesses, especially startups. Our own Paul L. shared his advice on how startups should navigate this period in a recent article by TechRound, highlighting the importance of accountants, bookkeepers and financial tech like Dext. You can read the article in full via the link: https://bit.ly/4an8gBG

Some good measures for startups in the new UK budget announced yesterday, nothing sounds like a game changer however. We could have wished more direct measures to support early stage startups and their investors. What are politicians waiting to launch an augmented SEIS/EIS scheme for startups that have an active solution to solve key planet or society issues. That would give so much clarity for ESG investors about where their investment matters the most. #budget #uk #ukgovernment #startup #startupecosystem https://lnkd.in/efFAh6Ba

42% of all investment in tech based companies in the EU has come from the US in 2023. US VCs are really making a move and could become the primary source of funding for tech startups in the UK/EU. As the article states, tech independance in the EU/UK is a long way off with this figure continuing to climb. https://lnkd.in/ehgsnbw5

💫 Catch some innovative stardust! 💫 We've just published an insightful glimpse into the UK's thriving Financial Services Startups sector: "Exploring UK's Finest Financial Services Startups, All British-Based Innovations". https://lnkd.in/g2qqhV7J From money transfer providers to green finance platforms and beyond, this feature is a celebration of creativity, courage, and British brilliance that's shaking up the financial scene. 📈💼 Featuring: Carbonplace – A promising carbon credit transaction network that champions sustainability. Elwood Technologies – Co-founded by Alan Howard, the company is a fintech heavyweight in digital asset markets. Atlantic Money: Founded by Neeraj Baid & Patrick Kavanagh, Atlantic Money is breaking the mold in the field of international money transfers. Treecard – A green finance platform founded by Gary Wu, James Cox, James Dugan, & Jamie Cox, kickstarting conscious consumerism with every purchase. Prograd– A game-changing credit marketplace for young people, co-founded by Ethan Fraenkel and Marco Logiudice. Btomorrow Ventures – A venturing unit thoughtfully crafted by Alexandra (Lexy) Prosszer & Lisa Smith, catalyzing entrepreneurial growth. Lanistar - The brainchild of Gurhan Kiziloz, Lanister is offering a breath of fresh air in personal financing. Lightyear - An innovative invest platform co-founded by Martin Sokk and Mihkel Aamer, shedding light on financial freedom. Gregory Bloom Salm Group of Companies - Co-founded by James Hickson, a financial catalyst for digital brands. Superfluid Finance - Pioneered by Francesco George Renzi, Michele D'Aliessi, and ZhiCheng "Miao" Miao, Superfluid is revolutionizing how assets move in decentralized finance. Join us in celebrating these visionaries! 🎉 👏 #UKStartups #FinancialServices #Innovation #BritishBusiness #Entrepreneurship

Thank you, BNN Bloomberg, for inviting me to a live interview yesterday. My message to the audience remains consistent with what I have been sharing: “Higher taxes mean less capital, reduced investment, diminished ownership, and fewer economic benefits. Period. Canada should own a significant part of great Canadian companies. We’re giving other countries the grand prize - ownership of great Canadian companies on a silver platter.” However, this is NEW: "This is a five-alarm fire situation. We have seen entrepreneurs already packing up. I even learned of a Canadian venture fund that plans to leave. This is not an empty threat; this is very real for Canada." Yes, job creators are leaving. And yes, it affects everyone, not just the 0.13%. One VC, whose name will remain anonymous, said the fund will pack up and go before June 25. I am grateful that this fund allows me to share this so that YOU know it is already happening. I am in a unique position, having come from a struggling middle-class background. I am a 3x entrepreneur. I have had 2x exits, the last one at US$660M. I could have sailed into the sunset, but I am still here in Canada and will continue to be. I am now an investor, solely motivated to help create more homegrown Canadian tech giants and keep them in Canada. When Wattpad was acquired by a foreign incumbent, only half the company was owned by Canadians at the time of the acquisition. I lived through all the joy, pain, and emotions 24/7 for a decade and a half. I am not an armchair coach, nor am I speaking from a high horse. Very few people in this country have experienced this firsthand and have this unique 360-degree perspective. Today, I am on the board of TIFF and MaRS (though I am not operating in these organizations - there is a big distinction). I was a member of Council of Canadia Innovators when I was the CEO of Wattpad. I am now a member of CVCA. However, I am not representing any of these organizations. To be clear, I am not affiliated with, let alone endorse, any political party. The only entity I represent is myself. When I say we have a five-alarm fire, trust me. It is a five-alarm fire, both in the short term and in the long term. The tax change and the narrative that comes with it are extremely troubling. As a Canadian citizen, I have an obligation and responsibility to speak up. If we, as Canadians, don’t own a piece of our own pie, we will be in big trouble. We will be left with digital breadcrumbs, selling our next generation short. Happy long weekend!