In a challenging landscape for UK technology firms, Deliveroo and Darktrace have emerged as notable success stories in the recent Founders Forum UK exit 50 report. This annual report, compiled with Tech Nation and HSBC Innovation Banking, highlights tech companies that have effectively scaled and transitioned to lucrative exits over the past two years.
Deliveroo’s Acquisition by DoorDash
Deliveroo, a leading food delivery service based in London, agreed to a £2.9 billion acquisition by US company DoorDash in May 2025. This deal valued Deliveroo at approximately 180 pence per share, marking the end of its four-year tenure on the London Stock Exchange (LSE). Initially, Deliveroo’s 2021 IPO valued the company at £7.6 billion but encountered significant investor skepticism, leading to a 50% decline in share prices post-listing.
Challenges and Market Observations
Deliveroo’s founder and CEO, Will Shu, noted that larger exchanges, such as NASDAQ and NYSE, offer greater liquidity and appeal compared to the LSE. He mentioned that joining a larger entity would facilitate more substantial investment in the business.
Darktrace’s Shift to Private Ownership
Ranked just above Deliveroo, Darktrace also navigated a significant transition from public to private ownership. The cybersecurity firm was acquired by US private equity group Thoma Bravo for $5.3 billion in April 2024, with the deal completed in October. This acquisition stands as one of the most significant tech buyouts in the UK for the year.
Public Market Difficulties
Darktrace debuted on the LSE in 2021 at a valuation of £1.7 billion but struggled to keep pace with its US counterparts. Jill Popelka, Darktrace’s president, explained that regulatory limitations in the UK hindered employee equity participation, a challenge not faced in the US market. This flexibility contributed to Darktrace’s decision to pursue private ownership.
The Broader UK Tech Landscape
The challenges facing Deliveroo and Darktrace reflect a wider trend in the UK tech industry. According to the Founders Forum report, 94% of featured companies exited via acquisition, with over half of these acquired by US-headquartered firms. The combined value of these exits exceeded $33 billion, while these companies raised over $6 billion collectively.
Investment Climate and Future Prospects
Despite recent reforms intended to invigorate the UK market, analysts highlight a persistent valuation gap compared to US markets. Charles Hall from Peel Hunt noted the urgency of reforms to retain companies that are considering IPOs, warning that firms like AstraZeneca might seek US listings if conditions do not improve.
- Deliveroo’s acquisition value: £2.9 billion
- Darktrace’s acquisition value: $5.3 billion (£4.25 billion)
- Combined value of UK exits in the report: $33 billion
- Funds raised by featured companies: $6 billion
The UK government and industry leaders are now advocating for initiatives that would support high-growth firms and enhance their retention in the region. There remains a sense of optimism as new funding initiatives, such as British Patient Capital’s £100 million Cambridge innovation fund, are introduced.
