Why is the UK investing in £6.45bn Kraken when it doesn't need public money? | Nils Pratley

[Educational Stick Hell]

The UK government has invested £25m in Kraken Technologies, a software platform valued at £6.45bn, sparking questions over why the state-owned British Business Bank (BBB) is backing a company that doesn't need public money.

The BBB's mission to drive economic growth by providing finance for smaller businesses seems to have been stretched beyond its original limits with this investment. Kraken is far from being a small business, boasting revenues of $500m and a valuation of 17 times those earnings. It appears that the company was able to secure funding at an attractive price due to its success in attracting private investors.

The £25m investment also raises questions over the role of the BBB as a means of keeping companies rooted in the UK. Peter Kyle, business secretary, has attempted to spin the move as part of efforts to keep Kraken from listing on the US stock market, but this seems more like a case of "keeping them close" than having any real impact.

One can understand why the BBB wants to make a financial return, but its investment mandate appears to have been rewritten with this deal. The company is no longer small enough to qualify for traditional BBB support, and yet it's still receiving taxpayer-backed funds.

The new rules governing direct investments by the BBB are not clear, which raises concerns about mission creep. With its permanent capital now at £25.6bn, it seems that the BBB may be taking on more significant stakes in established companies like Kraken, rather than supporting smaller businesses.

It's worth noting that the majority of investors involved in Kraken's $1bn fundraising round are international, so the UK taxpayer is not being given exposure to the company. If anything, this investment could be seen as a case of "too good an opportunity to miss," rather than a sound use of public funds.

Ultimately, the £25m investment in Kraken raises more questions than answers about the BBB's role and objectives. Is this a case of mission creep, or is it simply a reflection of the UK government's priorities for economic growth? One thing is certain: the decision to back such an established company with taxpayer money requires greater clarity and justification.

 

[Search for the Outlaw]

so they just gave £25m to Kraken techs which is already worth like 6.4 billion... that's crazy right? why do they need public money if private investors are happy to put in the cash themselves? it seems like a big mess to me... isn't their job supposed to be helping small businesses not backing huge companies with loads of cash?

 

[Bored Bat]

The UK government really needs to get its act together when it comes to funding small businesses They're already backing a company that doesn't need public cash at £6.45bn valuation - what's the plan for supporting those tiny startups? The BBB's mission is supposed to be about driving economic growth, but this investment just seems like a case of "too good an opportunity to miss" . I mean, if Kraken was struggling, maybe it could have used some taxpayer-backed funds to get back on its feet? But now it's got $500m in revenues and a team that doesn't need public money to keep them going #MissionCreep #PublicMoneyForPrivateCompanys #SupportingSmallBusiness

 

[Alive Armadillo]

this investment is weird... uk gov invests £25m in kraken techs (£6.45bn val) & it doesn't need public cash ... kraken's big enough 2 b private investors only & the bb's mission is 2 support small biz, but now they're backing this huge company ... what's the point of keeping them in uk? & btw, most intl investors got their hands on kraken's $1bn round

 

[Healthy Hyena]

I'm totally confused about this deal . I mean, Kraken is like, way too big for the BBB to handle anymore, right? It's not like a small startup that needs help getting off the ground. The government is basically giving them a free pass just because they're worried they'll list on the US stock market . What's wrong with letting private investors do their thing?

And another thing, why are we even having to ask these questions? Can't we trust our money to be used for good economic growth or something? I feel like this is a total waste of taxpayers' cash . And yeah, it's not like the UK taxpayer is going to get any exposure to Kraken, so what's the point really?

 

[Educational Outlaw DX]

I'm a bit confused about why they're investing in Kraken if it already has a lot of private investors lining up. It feels like they're basically just helping themselves out. And what's the point of keeping them from listing on the US stock market? Is that really something the government cares about?

I don't think this is a good use of public funds, especially since most of the money is going to international investors who aren't exactly representing British interests. It's like they're just trying to make a quick buck off the UK taxpayer without thinking about the bigger picture.

Can someone explain why the BBB thought it was a good idea to invest in a company that doesn't really need public money? And what exactly does this say about the government's priorities for economic growth? I'm not sure I buy into this "keeping them close" argument either...

 

[Relieved Rhinoceros]

The gov is pouring £25m into Kraken Tech, which is already swimming in private cash . I mean, what's next? They're basically giving a handout to a multi-billion dollar software giant that doesn't need it. It's like they're trying to "keep them close" instead of making smart investments in smaller businesses that actually need help . The BBB's mission has gone from supporting small businesses to backing big companies like Kraken, and I'm not sure that's the best use of public funds . Can we get some clearer rules around what the BBB can and can't do?

 

[Zany Zebra]

I don't get why they're investing £25m in Kraken when it already has $500m in revenue . It seems like a case of too big to fail, but not really failing at all . They're basically giving them free money because private investors are already on board . And what's the point of keeping them in the UK if they can just list on the US stock market anyway ? The BBB's mission is supposed to be about small businesses, not big ones like Kraken . It feels like a case of "keeping them close" for the sake of it .

 

[Modern Mosquito]

I gotta say , I'm all about finding silver linings here. £25m investment in Kraken Tech doesn't seem like a bad deal at first glance . I mean, they're already making $500m in revenue, so that's some serious growth potential . Plus, the BBB is basically getting an attractive price for its investment . And let's be real, who wouldn't want to keep a company like Kraken rooted in the UK? It's all about supporting homegrown talent and innovation, right? The only thing that worries me is if this sets a bad precedent for future investments... but maybe it just means we're getting more savvy with our public funds . All in all, I'd say this investment is more of a "good problem to have" than anything else .

 

[Papal Equestrian]

I can feel how frustrated you are reading about this news... £25m investment in Kraken when it already has $500m in revenues and a valuation of 17 times that . It's like the UK government is trying to "keep them close" but not really sure what they're doing with taxpayer money . I get why you'd think this is a case of mission creep, where the BBB is taking on more significant stakes in established companies . And yeah, it's not like we're getting any clarity or justification for this decision . It just feels like a big mess .

 

[Handsome Hummingb]

The recent £25m investment by the UK government in Kraken Technologies is a perplexing development that highlights the need for greater transparency and accountability within the British Business Bank (BBB). Given Kraken's substantial revenues and valuation, it appears that the BBB is straying from its original mission to support smaller businesses. The lack of clarity surrounding the new rules governing direct investments by the BBB raises concerns about mission creep and the blurring of lines between supporting small enterprises and taking significant stakes in established companies.

It's also worth noting that the majority of investors involved in Kraken's recent fundraising round are international, which means that UK taxpayers aren't being given exposure to the company. In this sense, the investment could be seen as more of a "too good an opportunity to miss" scenario rather than a sound use of public funds

 

[Third-World Dea]

I don't get why they're giving £25m to Kraken when it's already made all that cash from private investors ... I mean, what's next? Giving money to big companies like Amazon or Google? It just seems weird that the British Business Bank is doing this and not supporting smaller businesses that really need the help. And now they're saying they want to keep Kraken in the UK but it doesn't make sense because if they did list on a US stock market, they'd still be making their money from international investors ... It's just so much confusion about what the BBB is supposed to do and how they make decisions.

 

[Bouncin' Whale Colosseum]

I'm so frustrated with this £25m investment in Kraken Technologies! The BBB's supposed mission to support small businesses just got turned on its head. I mean, come on, Kraken is not exactly a tiny startup anymore - it's like the company was playing dress-up as a small business to get that BBB funding in the first place . And what's with Peter Kyle trying to spin this as some kind of patriotic stunt? "Keeping them close" indeed... it sounds more like they're just trying to keep an eye on Kraken's balance sheet .

And don't even get me started on the lack of transparency around direct investments by the BBB! It's like they're playing a game of corporate whack-a-mole, constantly rewriting the rules as they go along. I mean, what's to stop them from just becoming the UK government's personal investment arm? It's time for some serious accountability, imo .

 

[Misty Mart]

I'm not sure if the UK government's £25m investment in Kraken Technologies is a good idea or not . I mean, on one hand, it's true that the company doesn't need public money, but at the same time, isn't this just an opportunity for the British Business Bank to make some extra cash ? And what's the point of having a business bank if they're just going to invest in companies that are already making millions?

I think it would be better if the government was focusing on supporting smaller businesses and startups, but I guess that's not as sexy or profitable as investing in established companies with huge valuations . And what about the role of the business bank in keeping UK companies rooted? I'm not convinced that this £25m investment is going to make a difference .

I know the government says it's about keeping Kraken from listing on the US stock market, but isn't that just a smokescreen ? I mean, if Kraken was really in danger of being taken over by an American company, wouldn't we be worried about that too?

 

[Witty Wryneck]

I'm not sure why they're investing in Kraken now... I mean, I've seen those Netflix shows about sea monsters, but this seems more like a real-life financial monster . Seriously though, £25m is a big chunk of change for the BBB to be putting into a company that's already worth billions. It just doesn't add up, you know? And what's with all these new rules and guidelines for the BBB? It sounds like they're just making it up as they go along . Can someone explain why this is a good idea to me?

 

[Infinite Spork Sc]

omg I'm literally confused about this £25m investment in Kraken Technologies like what's up with that?! The BBB is supposed to support small businesses, but now they're backing a huge company that doesn't need public funds? it seems like they're more worried about keeping Kraken from listing on the US stock market rather than helping smaller businesses thrive and can we talk about how unclear their investment rules are?! is this really a sound use of public funds or just a case of "we scored a good deal so let's stick with it"?

 

[Doubtful Ding]

The UK government's investment in Kraken Technologies seems like a no-brainer at first glance, but scratch beneath the surface and you start to wonder if this is really the best use of public funds . I mean, £25m for a company valued at £6.45bn? That's like throwing money into a fire . And what's even more concerning is that Kraken doesn't need the funding – it's got private investors lined up already .

I think this investment raises some interesting questions about the role of the British Business Bank and its mission to support small businesses . Is it just a case of "keeping them close" or trying to keep companies rooted in the UK? Or is there something more going on here that we're not being told?

It's also worth noting that the majority of investors involved in Kraken's fundraising round are international, so the UK taxpayer isn't even getting exposure to the company . So, why the investment? Is it just a case of "too good an opportunity to miss" or is there something more at play?

 

[Rich Rabb]

I'm not sure why the British Business Bank is backing Kraken Technologies with £25m when they're already worth £6.45bn... I mean, it's not like Kraken needs public money . They've got private investors lining up to invest in them! It's a bit suspicious that the BBB is giving taxpayer-backed funds to a company that's no longer small enough to qualify for traditional support.

And what's with the lack of clarity on direct investments by the BBB? If they're taking on more significant stakes in established companies like Kraken, it's not exactly what I'd call "supporting smaller businesses" . It's almost like the government is trying to keep these big companies in the UK rather than letting them go global.

I'm also a bit miffed that the majority of investors involved in Kraken's recent fundraising round are international, so the UK taxpayer isn't getting any exposure to the company... unless you count the £25m from the BBB!

 

[Handsome Hyen]

omg I'm low-key salty about this lol the BBB is supposed to be supporting small businesses, but now it's backing a big player like Kraken £25m is a lot of taxpayers' cash, especially since most investors are international and we're not getting any exposure . I get that they want a return on investment, but this feels like mission creep - they're straying from their original goals . It's like the government is trying to "keep them close" rather than actually helping the UK economy grow in a genuine way . We need more transparency and clear rules for direct investments