At last week’s Investment Conference, Matt Adey from the British Business Bank gave an insightful presentation on the latest trends in business funding in the UK. He made sense of the vast amounts of data from across the UK and summarised them into these quick points:
There are more options for equity funding than ever…
Venture capital, business angels, crowdfunding, corporate venture capital, and even banks are all providing greater funding for small businesses. Crowdfunding is showing particularly strong growth.
… yet small businesses are more reluctant to seek funding.
Despite the proliferation of funding options, small businesses have become less likely to seek outside funding in the past year. This may reflect general uncertainty about the economy.
2017 is a high-value investment year.
This is mostly due to the handful of large investments in high-growth companies such as Deliveroo and Improbable, but it’s also part of a larger trend…
Fewer businesses get bigger deals.
Compared to previous years, more investment capital is going to a smaller number of companies, which may mean that investors are being more selective about who they invest in but are also more confident in their choices.
What about Brexit?
Adey has found that the majority of small and medium companies are not concerned about the impact of Brexit on their business. It’s one factor to consider when thinking about a business’s future, he says, but certainly not the most important one.
In the ever-changing world of business finance, staying on top of the general trends can lead to a significant advantage. Remember that, as an entrepreneur, you have more options than ever but also need to put your best foot forward to secure high-value deals.
Looking for more tips to get investment-ready? Come to our 28th November workshop, ‘Getting Investment-Ready: Strategy and Valuation.’ The event will be held at London’s WeWork Moorgate and begin at 6:00 p.m. Get your tickets here!