ICON66 – Volume 6
Welcome – The Next Big Thing
Name:
Alan Bristow,
CEO
Company: ICON
Mobile: +44
(0)7899 921
600
Email: alan@iconcorpfin.co.uk
It’s here, it’s happening and it’s all around us. The tech sector is entering one of its most exciting periods since the birth of the ‘Father of Computing’ Charles Babbage in 1791. Little did Babbage know that his invention of the “first universal digital computer” would have such a profound impact on the growth, lifestyles and wealth of nations.
Today the pace has just got faster. Not only are many of the world’s largest organisations technology companies but the young upstarts of the dotcom days: Amazon, e-bay, Google and Yahoo are also now some of the world’s leading companies and brands. Internet retailers account for billions in terms of revenue with internet advertising overtaking TV advertising in terms of impact and income. Europe in 2005 was home to one of the world’s legendary deals with the acquisition of Skype by e-bay for $4billion. The world has become a mobile and digital place – Charles Babbage would be very impressed!
The old order is changing. Silicon Valley,once the world cradle for innovation and technology, is clinging on to its status as the new technology superpowers: India, China and Eastern Europe are thrusting ahead with innovation and levels of growth that are simply not attainable in the West. Do not be fooled. These regions may still be seen by many as basing their success on call centres and low employment costs, but they are populated by very smart, entrepreneurial and technologically literate people who have a hunger for success. The new technology giants will be Indian and Chinese companies and we are already seeing an increasing number of these seeking international acquisitions. The corporate and venture capital world is investing heavily in these territories with new funds and joint ventures being announced, seemingly, on a daily basis. It’s time to turn those wagons around and head East not West.
The UK is particularly well placed for success. The entrepreneur is making a welcome return with increasing amounts of capital available to exploit the innovation which, for centuries, we have been so good at developing – and so good at leaving to others to make the most of.
We are still very short of the ‘trophy’ technology companies but have a wealth of technology companies in the small to mid-market that may go on to be worth £5m, £10m, £20m, £50m and £100m. Whilst these numbers may not excite some of the VC funds, the entrepreneurs who created these successful companies and cash them in, are usually very happy people. Increasingly we are seeing big technology companies acquiring those innovative UK tech companies at this, smaller, end of the market. The big £100 million plus deals may get all the news, but it is these unnoticed transactions that are increasingly attracting the global buyers. In addition, in the UK, the AIM market has been one of the world’s most successful listed markets, with over 400 companies obtaining a listing in 2005. Most of these companies will need acquisitions to grow and will provide tremendous fuel to UK deal activity.
There are deals to be done and at ICON we are firmly at the centre of things and that is a great place to be.
Alan Bristow
alan@iconcorpfin.co.uk
