Valuable lessons and eye-opening stats at The Business Funding Show 2018
Held at East Wintergarden in Canary Wharf, London, The Business Funding Show brought together financial experts, lawyers, start-up accelerator schemes and more to educate SMEs about the available funding options.
Business Leader Magazine’s Darren Wood attended the event.
The Business Funding Show opened with an interesting statistic that revealed that 70% of investor finance is still from London, Cambridge or Oxford and it was suggested by panellists that the UK needs wider support to increase opportunities in other regions.
It was also explained that 2017 was a growth year for alternative investment and finance. With London having 20% of high growth companies while Northern regions only had 8%. With Tim Hames, director general of the British Private Equity and Venture Capital Association believing Brexit will have little impact to UK investment.
When talking about investment, and in particular start-up schemes, the panel brought up some interesting comments regarding crowdfunding, with Matt Cooper, Crowdcube commercial director saying: “Female founders statistically have a higher success rate at crowdfunding, stating that 35% of CC investors are women but statistically do better.”
Jenny Tooth, CEO of of UK Business Angels Association, added: “More women entrepreneurs are applying for first stage funding.
“Women investors need better resources where they can easily find entrepreneurs to invest in. What needs to be remembered is 30% of angel investment sits alongside venture capital.”
Preventing legal pitfalls and get investment ready was next on the agenda as Karen Holden and Jackie Watts from City Law Firm alongside Benjamin Ayres of Bagboard and Tim Stovold of KingstonSmith took to the stage.
On valuing businesses, Tim Stovold of KingstonSmith said: “Pre-revenue businesses are difficult to value. Financial records which go from nothing to sky high will upset financial investors. Have a true idea of costs. Five year plans are needed.”
Benjamin Ayers of Bagboard, added: “When you seek out investors make sure you can find those who are aligned with what you’re doing.”
During the ‘Going Global’ talk, Daniel Glazer, partner at Wilson Sonsini, gave some crucial advice to those who want to expand their business internationally, saying: “UK startups need to justify why they would want to raise money from the US before going there. It’s better to initially raise money in the UK to validate initial traction and a story in the USA before approaching US investors.”
Overall, a tremendous quality of speakers were on show to give some fantastic advice and it will be interesting to see if those who attended will utilise the advice given on their way to becoming the next big thing.