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  • 📈 25% Corporation Tax: Labour’s Bold Business Bet

📈 25% Corporation Tax: Labour’s Bold Business Bet

Harry Stebbings Bags €360M, VCs Swoon

October 15, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • 25% Corporation Tax: Labour’s Bold Business Bet

  • Harry Stebbings Bags €360M, VCs Swoon

  • £1.5bn Investment: ServiceNow’s Toast to UK Innovation!

The summary: Rachel Reeves is freezing taxes to lure big business, while Labour promises stability, investment, and a fresh start after Brexit’s chaos—all with a cheeky £25bn question mark looming overhead.

The details:

  • Rachel Reeves made her bold fourth tax freeze pledge, capping corporation tax at 25% to lure global business, all while leaving herself little room for financial wiggle in the upcoming Budget.

  • Speculation swirls about how she'll plug a £25bn spending gap, with wealth taxes and employer national insurance hikes looming as potential targets.

  • Reeves and Keir Starmer rolled out the red carpet for billions in business investment, with big names like DP World, Manchester Airports Group, and clean energy projects leading the charge.

  • Amidst Labour’s charm offensive to business, the government promises economic stability, a turbocharged UK Infrastructure Bank, and a final goodbye to the post-Brexit "circus."

Why it matters: Rachel Reeves' tax freeze shows Labour trying to woo big business while playing a risky game with the nation’s purse strings. With a £25bn hole looming, it's anyone’s guess who’ll get hit with the bill—likely the wealthy or employers. Meanwhile, the charm offensive to secure investment screams "We're open for business," but with Brexit scars still fresh, it's more "We’re sorry, please come back."

The summary: 20VC’s latest €360 million fundraise proves Harry Stebbings is shaking up venture capital with an operator-led approach, media savvy, and a stellar lineup of investors and tech heavyweights.

The details:

  • 20VC, the London-based firm led by Harry Stebbings, just raised over €360 million in its third fund—more than double its last effort. Clearly, fundraising struggles are for other firms.

  • The fund splits into €114.7 million for seed and $252.3 million for Series A, all with a little help from heavy hitters like MIT, Horsley Bridge, and RIT Capital Partners.

  • 20VC's secret sauce? Three sub-funds (20Sales, 20Growth, and 20Product), powered by a crack team of operators from top tech names like Notion, Shopify, and Snapchat.

  • Not just investors, 20VC's media empire is booming too, with over 150 million podcast downloads and a star-studded guest list, including the likes of OpenAI's Sam Altman and Spotify’s Daniel Ek.

Why it matters: 20VC’s eye-popping fundraise shows that even in tough times, top-tier talent and a sharp strategy still attract big money. With its operator-led sub-funds and media clout, 20VC isn’t just playing the VC game, it’s rewriting the rulebook. And if Harry Stebbings' podcast hasn’t popped up in your feed yet, you might want to check your Wi-Fi.

The summary: ServiceNow is set to invest £1.5bn in the UK, boosting tech talent and innovation faster than you can say "tea and biscuits," proving that Britain’s digital transformation is well and truly on the up!

The details:

  • ServiceNow is splashing $1.5bn into its UK operations, eyeing a massive expansion of offices, staff, and data centres with Nvidia-powered AI for local processing—all within five years.

  • Aiming to boost UK talent, the AI giant plans to upskill 240,000 learners, all while servicing big-name clients like BT, Aston Martin F1, and NHS with its AI productivity platform.

  • Launched during the PM-led International Investment Summit, this investment is a shining nod to Britain’s tech prowess and open-for-business attitude.

  • As CEO Bill McDermott puts it: AI in the UK isn’t just transforming business, it’s enriching lives and society—one clever algorithm at a time.

Why it matters: ServiceNow's £1.5bn investment is a resounding thumbs-up for the UK tech scene, proving that even in a world of uncertainty, the digital transformation train isn’t stopping anytime soon. With plans to upskill a quarter of a million learners, the UK is set to churn out more tech-savvy talent than a pub on quiz night. So, while the rest of us are still trying to work out how to operate the remote, ServiceNow is busy crafting a future where technology and innovation are as British as a cuppa and a biscuit.