Dan Wagner, a prominent English tech entrepreneur known for founding multiple successful ventures, shares his perspective on the contrasting attitudes towards business failure in the US and Europe. Wagner, who began as a hi-fi salesman in London, has sold businesses worth hundreds of millions of dollars but also faced setbacks such as the collapse of Powa Technologies in 2016. He currently leads Rezolve, a mobile commerce company utilizing patented Gen AI technology to enhance e-commerce experiences.
In the 1980s, European venture capital markets were significantly less developed compared to the US, making it difficult for entrepreneurs like Wagner to secure funding. Today, European markets have grown, but the amount of capital and sophistication in the US remains superior. Wagner’s early company Maid was a pioneering online information firm, and his later venture, Venda, achieved considerable success. Despite this, the failure of Powa Technologies highlights the persistent stigma attached to business failures in Europe compared to the US.
Entrepreneurial Journey
Wagner’s career trajectory includes the establishment of Maid in 1984, which he floated in 1994, making him the youngest head of a company listed on the London Stock Exchange. He later founded Venda, an e-commerce services firm sold for around $50 million. Contrastingly, his venture Powa Technologies, once lauded by former British Prime Minister David Cameron and considered a British unicorn, collapsed in 2016.
“The European VC and private equity capital markets have developed fantastically well in the last 40 years. However, the level of capital that is available in the US is of a material nature greater, the level of understanding in the United States is of a material nature more sophisticated. And entrepreneurs, who have had a failure like I did are given actually a kind of badge of honour, it’s almost like ‘you’ve failed so you have learnt a lot of lessons Dan.’ Whereas here I think if you have had a failure, particularly when you are in your mid-50s, I am toast. You are good for nothing, put you on the scrap heap kind of thing.”
Rezolve’s Innovations
Wagner’s latest venture, Rezolve, aims to revolutionize mobile commerce by helping merchants engage better with customers. Recently listed on Nasdaq via a SPAC, Rezolve employs Gen AI technology in products such as Brain Commerce, which offers human-like advice and recommendations for online purchases. Other innovations include checkout technology Brain Checkout and Brain Assistant, a Gen AI-trained support function for post-purchase queries.
“We help customers be more knowledgeable in their purchase decision when buying online.”
Rezolve also faced challenges, particularly with its Chinese operations. Due to geopolitical tensions and trade wars between the US and China, Rezolve demerged its Chinese business, impacting its revenue and market presence in the region. This strategic move was necessary for the company to proceed with its Nasdaq listing.
“Unfortunately we had to demerge that business unit and our relationship with the state of China because the US and China have a bit of a spat going on. And the output of that was we could either not list on Nasdaq, given that our main revenue source was China, or demerge the Chinese business. And I took the decision to demerge the Chinese business.”
Despite the setbacks and challenges, Wagner continues to navigate the complex landscape of tech entrepreneurship, leveraging his experience and new technologies to drive innovation in mobile commerce. The contrasting views on failure between US and European investors underscore the broader cultural and financial differences shaping entrepreneurial ecosystems in these regions. By understanding these dynamics, aspiring entrepreneurs can better strategize their ventures and navigate potential challenges.
