Early stage UK startups are looking to raise an average of £2m in funding

A study conducted by the VCTA shows that these new companies plan to invest money primarily in research and development or new technologies.

New research reveals UK startups They are looking forward to being lifted an average of 1.9 million pounds (2.14 million euros to change) over the next two years to fund its growth plans.

This would demonstrate the desire for growth of entrepreneurs in the country despite the economic challenges they face, such as inflation and possible recession.

The study, commissioned by the Venture Capital Trust Association (VCTA), was conducted among 240 senior decision makers responsible for newly launched small businesses less than seven years old with up to 250 employees.

The vast majority (92%) of those surveyed said they would likely consider raising capital through a venture capital credit.

The most common reasons for seeking financing cited by entrepreneurs are: Investment in research and development (48%), new technologies (45%) equipment and machinery (42%).

More than a third (36%) plan to use the money to hire new talent and nearly a quarter (23%) to launch a new product or service. Only 17% of respondents indicated that they would need the money to improve their cash flow.

engines of the country’s economy

“he Encouraging to see such a strong level of equity demand among companies and early stage companies across the country“says Will Fraser-Allen, president of the VCTA.

“The companies’ plans to deploy fresh capital to fund areas such as research and development, new technology and hiring speak to their pro-growth mindset. As the UK faces an uncertain future, your contribution is particularly important as many large companies are under pressure to cut costs and halt investment plans.” Add.

Startups, launched with ambitious expansion plans, Support the health of our economy“, The responsible person concludes.

Early-stage companies rely on equity to grow because they lack a proven track record for attracting other types of financing, and venture capital funds can be an important source of support, the VCTA argues.