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

对欧洲初创企业而言,估值取决于地理位置,地理位置,还是地理位置。

Big Take

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2025-02-11

16 分钟
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Financial markets in Europe have long been fragmented and constrained, driving home-grown startups to list and raise capital in the US. Now, Europe is trying to reverse the trend. Can it hold onto innovative firms — and talent?  Today on the show, host Sarah Holder talks to Bloomberg’s Sagarika Jaisinghani about why location matters so much for startups and what Europe’s challenges mean for the region’s economic outlook.Read more: Broken Markets Hold Back Europe as Trump Amps Up the Pressure See omnystudio.com/listener for privacy information.
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  • Bloomberg Audio Studios Podcasts Radio news Zilch Technology limited Is a buy now,

  • pay later firm based in the U.K. the fintech startup launched its platform in September 2020.

  • By November 2021, it was valued at over $2 billion,

  • setting a record as the fastest European company to reach double unicorn status.

  • Zilch Technology is expected to go public later this year,

  • and the London Stock Exchange should be the company's natural home.

  • But there's a very real chance that Zilch might forsake its hometown and move to New York.

  • We spoke with their chief executive officer, Philip Belliman.

  • He said, as a CEO, what you're thinking about is two things.

  • Sagarika Jason Khani covers stock markets and investment strategy for Bloomberg.

  • One is obviously how do you create the revenue?

  • How do you create the profit on the business side of things?

  • And the other side is how do you get the best valuation for your firm possible?

  • Yes, profitability is important,

  • but companies looking to maximize their valuation have to think about location too.

  • And for a long time, Europe hasn't had a great sales pitch.

  • U.S. stocks on average trade at 22 times earnings,

  • which is a near 60% premium over what companies can currently command in Europe.

  • In fact, another source that I was talking to, they used a very interesting turn of phrase.

  • They said in Europe a lot of the times companies trade at a lower valuation than is fair just