Trying to grow our own Apples, Googles and Amazons

The LSE's new high growth segment.

With the launch of the London Stock Exchange’s High Growth Segment set for March, it appears that UK technology companies of all sizes will have a domestic listing to suit their needs. The High Growth Segment has been launched to appeal to technology and other growth companies that want to list in London but may not wish to apply for a Premium Listing (be it for eligibility or regulatory reasons) but would like an alternative to AIM, the London Stock Exchange’s junior market..

There is a popular belief that the UK capital markets are not supportive of technology companies and that there has been a flight of UK technology companies to list in the US. However, our analysis indicates that in fact no UK technology companies have listed in the US in the last three years; whereas during the same period more than 30 UK technology companies listed on AIM.

It appears, then, that smaller UK technology companies have already recognised the appeal of listing in London rather than in the US.

Smaller UK technology companies have, for some while, been choosing London rather than the US as their preferred listing destination and AIM can be seen to be doing its job as an incubator for UK companies. At the same time there has been a paucity of listings of larger companies both here and in the US. What is exciting about the launch of the High Growth Segment is that larger UK technology and other growth companies now have a real alternative to a Premium listing or joining AIM.

This can only be a good thing for London. Indeed, the London Stock Exchange has opened the High Growth Segment up to companies that are incorporated anywhere in the EEA, not just the UK. The expectation is, therefore, that European companies will also consider joining the High Growth Segment, further demonstrating London’s position as the leading European equity market.

What is key to this new initiative is that it provides another option to larger technology companies who wish to raise capital. UK technology companies have largely sought growth funding from the debt markets or from private equity. The High Growth Segment offers a real funding alternative.

The rest of this article can be read on economia.

John Hammond is an equity capital markets partner at Deloitte.

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I am special and I am worthless: inside the mind of a narcissist

There's been a lot of discussion about narcissists this week. But what does the term actually mean?

Since the rise of Donald Trump, the term “narcissistic” has been cropping up with great regularity in certain sections of the media, including the pages of this journal. I wouldn’t want to comment about an individual I’ve never met, but I thought it would be interesting to look at the troubling psychological health problem of narcissistic personality disorder (NPD).

People with NPD (which is estimated to affect about 1 per cent of the population) have a characteristic set of personality traits. First, they have a deeply held sense of specialness and entitlement. Male NPD sufferers frequently present as highly egotistical, with an unshakeable sense of their superiority and importance; female sufferers commonly present as eternal victims on whom the world repeatedly inflicts terrible injustices. In both cases, the affected person believes he or she is deserving of privileged treatment, and expects it as a right from those around them.

Second, NPD sufferers have little or no capacity for empathy, and usually relate to other people as objects (as opposed to thinking, feeling beings) whose sole function is to meet the narcissist’s need for special treatment and admiration – known as “supply”. In order to recruit supply, NPD sufferers become highly skilled at manipulating people’s perceptions of them, acting out what is called a “false self” – the glittering high achiever, the indefatigable do-gooder, the pitiable victim.

The third characteristic is termed “splitting”, where the world is experienced in terms of two rigid categories – either Good or Bad – with no areas of grey. As long as others are meeting the narcissist’s need for supply, they are Good, and they find themselves idealised and showered with reciprocal positive affirmation – a process called “love-bombing”. However, if someone criticises or questions the narcissist’s false self, that person becomes Bad, and is subjected to implacable hostility.

It is not known for certain what triggers the disorder. There is likely to be a genetic component, but in many cases early life experiences are the primary cause. Narcissism is a natural phase of child development (as the parents of many teenagers will testify) and its persistence as adult NPD frequently reflects chronic trauma during childhood. Paradoxically for a condition that often manifests as apparent egotism, all NPD sufferers have virtually non-existent self-esteem. This may arise from ongoing emotional neglect on the part of parents or caregivers, or from sustained psychological or sexual abuse.

The common factor is a failure in the development of a healthy sense of self-worth. It is likely that narcissism becomes entrenched as a defence against the deep-seated shame associated with these experiences of being unworthy and valueless.

When surrounded by supply, the NPD sufferer can anaesthetise this horrible sense of shame with the waves of positive regard washing over them. Equally, when another person destabilises that supply (by criticising or questioning the narcissist’s false self) this is highly threatening, and the NPD sufferer will go to practically any lengths to prevent a destabiliser adversely influencing other people’s perceptions of the narcissist.

One of the many tragic aspects of NPD is the invariable lack of insight. A narcissist’s experience of the world is essentially: “I am special; some people love me for this, and are Good; some people hate me for it, and are Bad.” If people with NPD do present to health services, it is usually because of the negative impacts Bad people are having on their life, rather than because they are able to recognise that they have a psychological health problem.

Far more commonly, health professionals end up helping those who have had the misfortune to enter into a supply relationship with an NPD sufferer. Narcissism is one of the most frequent factors in intimate partner and child abuse, as well as workplace bullying. The narcissist depends on the positive affirmation of others to neutralise their own sense of unworthiness. They use others to shore themselves up, and lash out at those who threaten this precarious balance. And they leave a trail of damaged people in their wake. 

This article first appeared in the 16 February 2017 issue of the New Statesman, The New Times