FINANCE REVIEW
WHAT ARE THE BEST FUNDING OPTIONS FOR NORTHERN BUSINESSES THAT ARE SCALING UP?
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Business Leader was the media partner for the recent Business Funding Show – which is the UK & EU’s leading event that connects funders with entrepreneurs. The event brought together thought leaders in the sector to discuss the future trends that are shaping the funding landscape. The Business Funding Show kicked off with a panel debate that provided an overview of the funding environment for businesses. The panel was chaired by Matt Adey, Director & Senior Economist at British Business Bank, and included: Juliet Rogan Head of High Growth & Entrepreneurs at Barclays Peter Cowley Author and prolific entrepreneur and investor Umerah Akram Head of ELITE UK
Matt Adey started the discussion by saying: “We’re seeing a big rise in alternative finance – with funding mechanisms such as asset-based landing increasing. The bank lending picture has been relatively flat and alternative finance companies have grown rapidly in order to support start-ups and scale-ups” The panel was then asked: WHAT ARE THE KEY DEVELOPMENTS THAT WILL SHAPE THE FUNDING ENVIRONMENT IN THE YEARS AHEAD? Jenny Tooth OBE: "Looking back at the last year there was some concern amongst investors about backing businesses and entrepreneurs, in what was a time of uncertainty. "Now, with more political certainty, it appears the investor community is back and ready to start backing start-up and scale-up companies again.
Tim Mills Managing Partner at the Angel Co-Fund
"I have also noticed that venture capital funding is going up and up the scale to fund bigger deals; and this has left angel investors to fill the space on the rung below."
Jenny Tooth OBE CEO of UKBAA.
Tim Mills: "We now have a strengthened government which will be unveiling policies
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that will have a direct positive bearing on the investment community. "The opportunity is there and with interest rates not looking like they are going anywhere, investing in businesses remains a sound and attractive investment." Umerah Akram: "I recently read with interest a Beauhurst equity investment report which showed that in 2019, £12bn was raised in private deals, with more than 1,700 deals pushed over the line. "In contrast to this, the IPO market was quiet last year but there was still £30bn raised on the markets, with around £6bn or £7bn coming through actual IPOs. "This shows that there are clear benefits to being a listed business because you can raise significant amounts of investment to fund growth."
"THE OPPORTUNITY IS THERE AND WITH INTEREST RATES NOT LOOKING LIKE THEY ARE GOING ANYWHERE, INVESTING IN BUSINESSES REMAINS A SOUND AND ATTRACTIVE INVESTMENT." Tim Mills
March - April 2020
