- Startup founders and venture capitalist in the UK are alarmed by proposed new laws to scrutinize foreign buyers buying and investing in British firms.
- The laws would impact firms operating in 17 so-called ‘sensitive industries’ such as artificial intelligence, quantum computing, and data.
- Any prospective major investors or buyers would need to pass the scrutiny of a new Investment Security Unit.
- Charles Delingpole, CEO of anti-fraud startup ComplyAdvantage, warned the move would “effectively give the government a veto” over any foreign acquisition.
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Venture capitalists and founders in the UK have expressed alarm at government plans to limit foreign companies from buying up British firms, warning such a move could be “risky for the startup ecosystem”.
On Wednesday, the UK government announced a proposed overhaul of takeover laws that give it greater power to scrutinize foreign acquisitions of and investment in UK companies in