In Boris Johnson’s first week as Prime Minister, he has, in key speeches, set out his vision of a future of innovation and change for the UK economy. His pro-business and pro-tech stance gives hope to a hugely important part of the UK economy.
IW Capital sees private investors as a source of vital growth funding for the UK’s broad range of socially responsible start-ups, and has conducted exclusive, nationally representative research into the ambitions of UK investors.
The study, of over 2000 UK adults, analyses investment trends, the goals of investors and the future of funding options for the businesses that will make up the foundation of the UK economy in years to come.
Headline findings
24% of investors are looking to support tech-based businesses, such as FinTech and BioTech, in the next two years – amounting to 4.5 million people;
21% of investors are looking to support a business within the creative industries – 3.8 million people;
46% of investors are more likely to invest in a business that makes a positive social or environmental impact – 8.6 million people;
42% of investors would support a local business or entrepreneur who benefits their community – 7.9 million people;
47% of investors agree that baby boomers (aged 55-72) are the most powerful community of investors to help SMEs grow in the UK – 8.9 million people.
As individuals look to become more closely involved with the societal impact their capital is being used for, investor appetite is most definitely not hinged solely on returns. With 46% of investors more likely to invest in a business that makes a positive social or environmental impact, in 2018 the value of assets in impact investing doubled to $228bn.
IW Capital’s research comes as figures from KPMG show that FinTech in the UK received over $16bn in the first half of 2018 alone, while BioTech raised £2.2bn in 2018, over half of this coming from venture capital and private investors.
Luke Davis, CEO of IW Capital, observed:
“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 businesses that are more often than not turned away by banks and traditional lenders.”
