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Time for City to remember its merchant banking roots

Britain is still good at incubating start-ups but seems to have forgotten its old genius for financing their growth, says Kleinwort Benson banker

The UK ranks in the world’s top five countries for business start-ups. But it languishes in the bottom quartile for attracting investment into new businesses.

This is not how it should be. During the Industrial Revolution, Britain led the world in channelling capital to start-ups - even if that is not what they were called then. That was the heyday of the merchant banks, and to bridge the financing gap the City needs to rediscover their skills.

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