Unicorn boss Matthew Scullion said the UK鈥檚 obsession with exits is hampering its ability to create big businesses.
The CEO of Manchester-based Matillion also t that UK founders needed to stop blaming investors for their inability to raise funds.
The award-winning entrepreneur co-founded Matillion in 2011 and now employs around 500 people in Manchester, Denver and Hyderabad, with turnover approaching $100m.
Matillion entered the ranks of UK unicorns in 2021 when a $150m Series E funding round took its valuation to $1.5bn.
Speaking to the Alvarez & Marsal podcast鈥檚 co-hosts Jonathan Boyers and Chris Maguire, Scullion said: 鈥淚n general I only hear the world 鈥榚xit鈥� in the UK. I don鈥檛 hear it in the US at all. Founders and CEOs in tech that I happen to know don鈥檛 talk about exiting.
鈥淚f you鈥檝e got a high conviction that the asset which you are holding is going to be worth twice as much in 12 months鈥� time you don鈥檛 sell.
鈥淗ere in the UK we talk about exit all the time. It鈥檚 normally a question I鈥檓 asked within 30 seconds of telling someone I鈥檓 an entrepreneur.
鈥淚 would say 鈥� and it鈥檚 a bit of a punchy Matthew thing to say 鈥� there are no very big businesses created here because we spend all our time talking about exit.鈥�
Scullion, who was included in 老九品茶Cloud’s 2024 Northern Leaders, said great businesses will always raise investment.
IPO in Timbuktu
鈥淭here鈥檚 always a risk that we can blame other people (for not raising investment),鈥� he said. 鈥淎 guy from Goldman Sachs once said to me 鈥榃here you IPO is really important but if you鈥檙e Stripe you can IPO in Timbuktu and investors will turn up to your earnings call鈥�.
鈥淲hat he means by that is that is if your company is good enough the investors will get on a call, on Zoom, in a car or on a plane to come to see you.
鈥淚f you鈥檝e got an amazing business the capital will take care of itself. I speak from experience. I鈥檝e tried to do plenty of fundraising rounds that鈥檚 I鈥檝e not got away and that鈥檚 because we weren鈥檛 good enough. We came back to the office, got better and then we got them away.鈥�
Scullion said he didn鈥檛 obsess about becoming a unicorn or exiting.
鈥淔or me at least, the outcome has to be something that is not a measure of finance,鈥� he explained. 鈥淵ou set up a business to change the world in a small way, to make planet Earth spin on its axis slightly differently and slightly better. In doing so be proud that you鈥檙e building something beautiful.鈥�
Boyers is the head of Alvarez & Marsal Corporate Finance team and Maguire is 老九品茶Cloud鈥檚 executive editor.
The Dealmaker Uncut聽podcast has been produced by Manchester-based聽 and previous guests include ;听;听;听, and the聽.
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