THE MAJORITY of UK entrepreneurs will look to raise funding in the next 12 months according to the latest EY Fast Growth Tracker.
The report surveys hundreds of entrepreneurs about their intentions for the future, and found that despite the current economic uncertainties surrounding Brexit, around 71 per cent of entrepreneurs plan to look for funding in the coming year.
However, half of the entrepreneurs surveyed pinpointed accessing finance as their biggest challenge, with finding the right people (41 per cent) the second biggest hurdle.
According to EY’s report, most entrepreneurs have recent experience with fundraising; three quarters of those surveyed completed their last round within the last two years.
Fintech firms were found to be the most ambitious in terms of their funding intentions, with more than a third (34 per cent) looking to raise more than £5m from their next fundraising. These firms were also found to have the highest expectations for their revenues, with two thirds suggesting they will increase revenues by more than 50 per cent in the next 12 months.
However, it is notable that the majority of entrepreneurs (62 per cent) are targeting overseas investors for their next round of fundraising, which may be the result of more than a third (39 per cent) admitting they were unable to find suitable investors in their last funding round.
“Funding has historically been, and continues to be, a hurdle to growth for the country’s entrepreneurial businesses,” said Richard Goold, EY Fast Growth Platform Partner.
“This research shows a disparity between matching ambitious enterprises with suitable investors, leading many to look overseas to find the growth capital they need.
“To make our start-ups a British business success, more routes to funding need to be created to ensure that these bright, entrepreneurial businesses are enabled to flourish.”