UK firms struggle to access domestic investment capital
Many British firms are struggling to access domestic capital.This leads them to seek funding from global sources. This is according to a recent report by the Treasury Select Committee. This is supported by a report from KPMG. They say that fintech investment in the UK dropped by 57% in the first half of the year. As the TSC report also highlights, there is a lack of venture capital investment outside London and the South East. This limited investment opportunities for high-growth businesses across the UK. The City of London Corporation supports the report’s findings. It aims to address the issue through the newly signed Mansion House Compact.
This commits nine major pension schemes to allocate at least 5% of assets to unlisted equities by 2030. This initiative will unlock £50bn for investment in tech, life-sciences, and bio-tech companies, supporting the development of high-growth firms.
A mere drop in the ocean. We need more incentives for SMEs to get ‘on board’ more UK investors. They need to show investors that their businesses has the capacity and incentives to grow. To get help in planning for investment or in finding investors, call us at BFS or complete our enquiry form.