The UK continues to be the key centre for the financing of interesting and innovative growth companies, regardless of any uncertainties around BREXIT. Aside from the US, the UK is unrivalled as a place to start and grow a business. Whether a start-up is motivated to become the next fintech unicorn, seeking to brew the next flagship Pale Ale or striving to achieve social impact, such companies are the foundation upon which our economy thrives and they should be encouraged to pursue innovation and job creation.
While government led initiatives such as the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) can take a great deal of credit for incentivising investors to fund young start-ups, a growing number of startups fail to evolve into growth companies. One reason for this is the increasing gap between seed and institutional funding, which can leave companies looking to raise between £1m - £5m, suffering the most. Furthermore, once a private investor loses the security of government led initiatives, the level of risk is much greater and companies can struggle to obtain the level of funding required.
At NEX Exchange, we are fortunate to meet some inspiring entrepreneurs and help support their growth. By providing access to liquidity combined with a live company valuation, we have found retail and institutional investors can be incentivised to back companies quoted on NEX Exchange’s public market. This alternative method of raising capital provides start-ups and early stage businesses with an opportunity reach their targets and thereby support our entrepreneurial economy
Matthew Dangell, Sales Executive