> the exits of UK startups are probably more acquisitional and trans-oceanic.
The US tends to purchase successful New Zealand startups oi reckon. Is it the same pattern in the UK?
I suspect there's a few major reasons:
(1) NZ startups seem to get acquired so that they can sell their products/services into the US market. NZ companies often struggle to market to the US. Similarly Rocket Lab moved to the US. However our local ebay competitor (TradeMe) was bought for a few billion by the UK based Apax Partners.
(2) NZ doesn't have the capital markets to buy successful businesses so we sell the family silver to overseas buyers.
(3) NZ government taxes owner's dividends (of the most successful businesses) at 39%. NZ's capital gain tax is 0% so owners usually have a financial incentive to sell their businesses.
For startups, our taxation system demotivates founders. Building or growing a business usually does not reward enough for the risks. A shame because NZ needs the foreign income.
The US tends to purchase successful New Zealand startups oi reckon. Is it the same pattern in the UK?
I suspect there's a few major reasons:
(1) NZ startups seem to get acquired so that they can sell their products/services into the US market. NZ companies often struggle to market to the US. Similarly Rocket Lab moved to the US. However our local ebay competitor (TradeMe) was bought for a few billion by the UK based Apax Partners.
(2) NZ doesn't have the capital markets to buy successful businesses so we sell the family silver to overseas buyers.
(3) NZ government taxes owner's dividends (of the most successful businesses) at 39%. NZ's capital gain tax is 0% so owners usually have a financial incentive to sell their businesses.
For startups, our taxation system demotivates founders. Building or growing a business usually does not reward enough for the risks. A shame because NZ needs the foreign income.