Prime Minister Boris Johnson’s vision, set out in key speeches, of tackling climate change, alongside his pro-business and pro-tech stance, gives hope to a hugely important part of the UK economy, according to small business investment house IW Capital.
The firm sees private investors as a source of vital growth funding for the UK’s range of socially responsible start-ups.
Research by IW Capital into the ambitions of over 2000 UK adult investors, shows that:
- A quarter of investors (24%) are looking to support tech-based businesses, such as FinTech and BioTech, in the next two years
- 21% of investors are looking to support a business within the creative industries
- 46% of investors are more likely to invest in a business that makes a positive social or environmental impact
- 42% of investors would support a local business or entrepreneur who benefits their community
- 47% of investors agree that baby boomers (aged 55-72) are the most powerful community of investors to help SMEs grow in the UK.
IW Capital believes that the changing appetites of investors has become a topic of keen interest for advisers, fund managers and investors themselves.
Also, as individuals look to become more closely involved with the societal-impact their capital is being used for, investor appetite will not be hinged solely on returns, the firm believes.
IW Capital says responding to the attitudes of investors is key to predicting the rise of future-facing sectors and points to figures from KPMG showing that FinTech in the UK received over $16billion in the first half of 2018 alone, while BioTech raised £2.2billion in 2018, over half of which came from venture capital and private investors.
Luke Davis, CEO of IW Capital, says: “This research reflects some of the trends that we have seen from our investor base in the last year or so. There has never been more demand for innovative, high-growth business investment opportunities.
“To see that such a large number of investors in the UK are looking to invest into technology companies, such as FinTech and BioTech, shows the desire that exists to support innovation in the UK.
“Coupling this with an ever increasing conscientiousness around the environment and climate change paints a picture of a future-facing and forward-thinking SME arena and community of investors.
“Private investors are a hugely important source of growth finance for small, IP-based business that are more often than not turned away by banks and traditional lenders.”
