Big Take

For European Start-Ups, Valuation Depends On Location, Location, Location

19 snips
Feb 10, 2025
Sagarika Jaisinghani, a Bloomberg reporter specializing in stock markets and investment strategy, discusses the fragmented landscape of European financial markets. She reveals how geographical location significantly affects startup valuations, highlighting the case of Zilch Technology's transition from London to New York. The conversation delves into the challenges European startups face in competing with their U.S. counterparts and examines recent reforms aimed at boosting local market competitiveness. Can Europe retain its talent and innovation? Tune in for intriguing insights!
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INSIGHT

Valuation and Location

  • Company valuation depends on location, especially for startups.
  • European companies often trade lower than fair value due to their "European postcode."
INSIGHT

Fragmented European Markets

  • Europe's fragmented financial market, with 27 different systems, hinders its growth.
  • This fragmentation creates difficulties for companies seeking seamless access to capital and investors.
INSIGHT

Challenges for European Companies

  • European companies face smaller capital pools, complex regulations, and difficulty reaching investors.
  • This leads to lower valuations and less liquidity compared to US counterparts.
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