In the constantly evolving world of tech investments, the discussion about disparities between US and UK valuations for listed companies often surfaces. Entrepreneurs, myself included, have sometimes looked across the Atlantic, tempted by the shimmering appeal of Wall Street. But over the years, I have noticed that when you dig into the statistics and real-life cases, the much-discussed valuation gap starts to crumble. It’s not as simple as US vs. UK anymore, misunderstandings, outdated perceptions, and misplaced strategies are often at the heart of this perceived divide.
The London Stock Exchange (LSE) has faced its share of challenges, especially when it comes to technology IPOs. High-profile companies like Arm and Flutter Entertainment choosing the US markets created a narrative of “if you want higher valuation, head to New York.” At first glance, that was convincing. Back in 2023, for instance, Arm’s decision to list in New York seemed to confirm these fears. But let’s unpack what’s really happening here and, more importantly, what entrepreneurs like you should take from this.
Why the Valuation "Gap" Persists in Conversations
The language and perception surrounding this topic are fueled by a handful of cases that make the headlines. Here’s how this idea gained momentum:
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Market Liquidity Myths
Many claim that liquidity, the ease of buying and selling shares, is lower on the LSE compared to the NYSE. But data from late 2025 shows a different picture. While the total trade value in New York is larger due to the sheer size of US giants like Apple or Microsoft, liquidity levels for mid-cap and emerging tech companies in London are near parity with their US peers when adjusted for like-for-like comparisons. -
Sector Representation
The US market benefits from a heavy weighting of tech “champions” in its indices. When you have companies like Amazon or NVIDIA pulling up averages, of course overall valuation multiples look inflated. Comparatively, London has been historically underrepresented in growth-heavy sectors like software or deeptech. Fixing this balance is long overdue but not impossible. -
Role of Marketing and Founder Strategies
Entrepreneurs often underestimate what it takes to change investor sentiment. It’s not enough to have a great product; you need to pitch aggressively and attract international investors early in your growth journey. Many founders still see a listing in London as a stepping stone rather than the finish line.
London’s Response and How It’s Changing the Game
The LSE wasn’t going to sit back and let this slide. In recent years, reforms have transformed the IPO process and improved London’s appeal for high-growth companies. Here are some of the most impactful changes:
- Dual-Class Shares: Traditionally a strength of the US, dual-class share structures are now accepted in London, allowing founders to retain control post-IPO while accessing public capital. This addresses a common founder concern.
- Incentives for Tech Listings: Reduced free float requirements and streamlined documentation have simplified how companies, especially those in fast-moving sectors, can go public.
- Targeted International Outreach: LSE’s tech summits and marketing campaigns have attracted increasing interest from global VC funds, ensuring tech-focused IPOs have institutional backing.
Flutter Entertainment’s move to New York might still weigh heavily on London’s reputation. However, newer listings like Watches of Switzerland and promising pipelines in fintech and AI software illustrate LSE’s progress in competing for global scaleups.
What Founders Can Learn from This Debate
The valuation story boils down to preparation and perspective, not geography. If you’re planning an IPO, or even just dreaming about one, here are the lessons I feel every entrepreneur should know:
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Start International Fundraising Early
Build relationships with global investors long before you list. A significant share of foreign institutional backing signals that your offering transcends local markets. -
Educate Yourself About the Market
Whether it’s New York or London, research is critical. The LSE isn’t as outdated as its skeptics claim. Look at recent examples of tech listings in London, they offer valuable insights into building confidence with investors. -
Embrace Dual Listing
If you’re drawn to the prestige of Wall Street but believe in the LSE’s local value, consider a dual listing. This hybrid option combines the best of both markets and reduces location-related trade-offs. -
Invest in Narrative
The IPO is part product launch and part performance. This might sound harsh, but your company’s story will determine how investors view your worth. Tell it confidently and showcase why your business is a global player.
Common Pitfalls Founders Should Avoid
When founders opt for New York, often the decision is based on myths rather than strategic necessity. Let’s avoid that.
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Mistaking Hype for Reality
Headlines can mislead. Arm’s New York IPO might’ve looked like a win, but it wasn’t necessarily a critical blow to the LSE given other macro trends in UK markets. Base decisions on data, not assumptions. -
Neglecting Policy Changes
Too few founders investigate financial incentives or reform efforts by the LSE. These tweaks, while less publicized, can lead to tangible benefits for your business. -
Skipping the Long Game
Choosing between markets comes down to your company’s vision. London is well-suited for businesses focused on sustainable growth and attracting steady institutional investors. The temptation to chase quick valuation spikes might backfire if businesses later struggle to sustain investor confidence.
Wrapping Up the Debate
As an entrepreneur who has seen startups rise and stumble on both sides of the Atlantic, I firmly believe the valuation debate needs a course correction. The data today shows that the so-called gap is closing and often muddled with perception bias.
For founders, the key takeaway is to focus less on where you list and more on how you prepare for that moment. Markets reward clarity and ambition, not geography. And with the LSE’s recent reforms, any claims about its inferiority to the NYSE smell increasingly outdated.
London isn’t just an alternative, it’s a viable hub, especially for those of us building businesses that require patient, global-minded growth capital. Decisions like these remind us that our most valuable asset as founders is a clear, confident strategy backed by research.
So, before you book your ticket to New York next time, ask yourself: Have you given London the fair fight it deserves?
For more on IPO preparation tips, read about the LSE's improvements to the tech listings process or explore the latest data on global valuations. It’s always helpful to see the numbers before placing bets on assumptions.
FAQ
1. Why is the London Stock Exchange considered less attractive than the NYSE for tech IPOs?
Historically, LSE faced challenges such as lower representation of growth-heavy sectors like tech and perceptions of reduced liquidity compared to NYSE. High-profile companies like Arm Ltd. and Flutter Entertainment choosing New York amplified this idea. Read more about why the LSE fell behind
2. Is there a real valuation gap between US and UK for tech companies?
Experts suggest the gap is mostly a myth, driven by outdated perceptions and headline cases rather than consistent data. Like-for-like comparisons show UK-listed companies matching US peers in liquidity and valuation multiples in recent years. Learn more about the valuation myths
3. How has London improved its framework for tech company listings?
The LSE introduced dual-class shares, reduced free float requirements, and streamlined IPO processes to attract high-growth tech firms. These reforms have boosted London’s competitiveness for global scaleups. Explore LSE’s progressive changes
4. What role do US tech champions play in driving valuation perceptions?
Key US tech players like Amazon, Microsoft, and NVIDIA dominate indices, artificially inflating average valuations in comparison to UK-listed companies. This creates an impression of a valuation gap where none exists in comparable sectors. Find insights about market representation
5. How can founders leverage London as a viable IPO hub?
Founders can build international investor backing early, pitch aggressively to global audiences, and adopt dual listings for flexibility. Focus on robust narratives and market education to attract institutional interest. Learn about successful strategies
6. Are liquidity levels between NYSE and LSE comparable for mid-cap tech firms?
Yes, data adjusted for company sizes shows near-parity in liquidity between the two exchanges for emerging tech companies. Misconceptions mainly stem from differences in total trade value driven by larger US firms. Explore the liquidity comparison
7. Could the perception gap between UK and US markets impact long-term growth?
Overcoming perception bias is crucial for the UK to sustain institutional investor confidence. London remains ideal for patient growth capital, contrasting the quick valuation spikes some chase in New York. Learn more about overcoming market biases
8. How have UK capital market reforms helped tech IPOs?
Reforms like simplified listing procedures and international outreach initiatives have attracted attention from foreign VCs and investors, steadily improving the attractiveness of the LSE for tech innovators. Discover the policy impacts
9. What should founders consider before choosing NYSE over LSE?
Decision factors include investor appetite, regulatory policies, and long-term strategic goals. Founders often mistakenly chase headlines instead of using data-driven decision-making. Explore founder decision advice
10. Can dual listings help bridge the valuation gap?
Dual listings allow companies to benefit from both local UK valuation and international exposure in New York, reducing the binary trade-off of choosing one market over the other. Explore dual listing advantages
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.