Market Trends for Start Ups
A recent BBC News article reported that investors need to take a long-term view when backing new start ups in the UK, according to a leading fund manager Neil Woodford. There is a concern that small companies are lacking the funding they require to grow. In an ever increasingly fast moving industry, start ups have the ability to move quickly and adopt new approaches but can sometimes be prevented in achieving this without the right amount of investment.
Recent figures show that the UK is a strong contender for being a home for entrepreneurs. Over a third of them come from overseas.
A number of reasons have been suggested for the failure to find the next ‘Google’, ‘Yahoo’ or ‘Facebook’. According to the report reasons cited have included a skills shortage, as well as lack of fundamental business skills such as leadership and also, perhaps most importantly, the difficulties in raising finances.
Investment can therefore be absolutely key to the success of any start up. It's all very well having funding from family and friends who are happy to help you, but there will be a limit to that resource for most people, and therefore start ups begin to look elsewhere. Its estimated that the average start up costs are £50,000 to £100,000. What is clear, however, is that the government's approach is committed to bolstering the investment start ups receive. Introduction of attractive tax reliefs for investors, for example, is just one of the structures that has been put in place. Whether it is enough to keep the amount of entrepreneurs for years to come will remain to be seen.
The next blog will touch on trends of where most investment is taking place and what is attractive to start ups. If you need advice or support to secure your investment, get in touch with Nicola Lucas today to discuss how she, and the team here at Nockolds, can help.