New research indicates a robust funding market for ambitious, yet frustrated, private UK companies. finnCap explains why accessing the right capital is so fundamentally important.
The looming threats of factors like Brexit and increasingly stringent regulatory headwinds should, one would expect, stifle the ambitions of British business leaders. Not necessarily so; new research from finnCap and Beauhurst reveals remarkable growth in the private company fundraising market, and 2017 is shaping up to be a record year.
Using data from Beauhurst, which has an extensive database on the UK’s start-ups and scale-up companies, finnCap – the No.1 broker to AIM companies and a leading adviser on the London Stock Exchange – expects that by the end of this year, a record £4 billion will be raised by ambitious British companies with cheque sizes of between £2 million and £25 million. This is a key fund raising range for established, growing companies.
We can see that the private company funding market demonstrates itself to be a robust, high-volume market that grows year on year, despite economic pressures. Analysis of data in 2016 – the figures hold for this year-to-date, with the market shown to be fairly consistent and predictable – show that technology businesses appear to account for the majority of transaction activity, and about half of that activity is based in the London area, with North and East England also displaying encouraging growth. However, CEOs nationwide of established, unlisted businesses are hungry to find the right growth capital and the right investors – investors that are genuinely engaged in the story of their businesses.
But there is a growing frustration on both sides of the table; there over 100,000 scale-up companies in the UK and hundreds of investment institutions with different investing criteria. Our specialists in private company financing know that too often the investment story is not developed enough for an investor to commit, or they simply don’t have the right data to be able to do due diligence. This is what can truly stifle the ambitions of business leaders, but with the right advice, support and access to the market that we can provide, we can help high-growth companies achieve real success.
Read the full research on the finnCap website to discover more and find out how finnCap can help ambitious companies grow.