Cleo Founder Reflects on Unicorn Status and UK Market Challenges

Entrepreneur Barney Hussey-Yeo recently discussed the challenges and opportunities facing his fintech company, Cleo, as it prepares to re-enter the UK market. Cleo, which achieved unicorn status with a valuation exceeding $1 billion, reported over £100 million in revenue last year, reflecting a remarkable annual growth of 106 percent.

In a conversation with City AM, Hussey-Yeo attributed his success to a pivotal moment nearly a decade ago when his mentor, Matt Clifford, encouraged him to pursue entrepreneurship rather than continue with his PhD studies. Hussey-Yeo remarked, “You may as well just take the risk; the biggest risk is not taking the risk.” This advice has proven fruitful, as Cleo has grown to become a prominent player in the fintech sector, focusing on providing AI-driven financial assistance tailored for young users.

Challenges in the UK Market

Despite Cleo’s impressive growth trajectory, Hussey-Yeo expressed hesitance about a full-scale return to the UK. He cited regulatory challenges as a significant factor in the company’s decision to prioritize the US market, where 99 percent of its customers were located prior to its exit from the UK in early 2022. “Regulation was one of the major reasons that I left the UK and made the US the dominant market,” he explained, adding that the current regulatory environment in the UK is perceived as risky for businesses.

Even with recent statements from UK Chancellor Rachel Reeves, who has called for reforms to ease the regulatory burden on businesses, Hussey-Yeo remains cautious. Reeves described the current regulatory framework as a “boot on the neck of businesses” and urged watchdogs to foster a growth-oriented environment. While he commended her efforts, Hussey-Yeo emphasized the need for a broader discussion regarding the government’s risk appetite.

“When you talk to the regulators, they hear the message from Reeves but want to have a conversation about what the government’s risk tolerance is,” he noted. He believes a more open dialogue is essential for meaningful reform.

Future Plans and Market Reform

Looking ahead, Hussey-Yeo confirmed that Cleo plans to pursue additional funding, with a Series D round expected in January. He stated, “We’ll do another round in January,” reflecting the firm’s growing valuation and expanding market presence. Cleo’s valuation has continued to rise, making it increasingly easier for the company to engage with potential investors and partners.

The fintech leader also raised concerns about the UK’s ability to compete in the global financial landscape. He argued that the country has become overly risk-averse, hindering innovation and leading to a scenario where startups often relocate to the US for better opportunities. He cited the case of Wise, which transferred its primary listing to the US earlier this year, as indicative of this trend.

Hussey-Yeo proposed a radical solution to rejuvenate the London financial market: a merger between the London Stock Exchange and a major US index. He believes such a partnership could enhance trust between regulators in both countries, ultimately benefiting firms operating across jurisdictions. “Trusted nations trust each other and want to be partners, so then the regulators should trust each other as well,” he stated.

While he acknowledges that significant reforms are necessary to attract companies back to the UK for listings, Hussey-Yeo remains optimistic about the potential for change. “It’s doable – but there are a lot of things to do,” he concluded, underscoring the critical need for action in the evolving landscape of global finance.