A Snapshot of the London Investment Scene

Despite the economic uncertainties of Brexit, the UK investment industry remains strong, and 2017 has brought good news for investors and entrepreneurs alike.

• London has been ranked the #1 European city for innovation by the European Digital City Index, and, according to EY, is the center of foreign direct investment (FDI) in Europe.
• 21% of UK startups plan to open an outpost on the European continent while keeping their headquarters in the UK. According to EMEA head and Silicon Valley UK president Phil Cox, this is evidence that ‘businesses see more opportunity than fear [in the UK], which can only be a good thing.’
• 89% of UK startups said they will hire and expand in 2017.
• The Office for National Statistics reports that business investment increased by 0.5% from 2017 Quarter 1 (£45.4 billion) to Quarter 2 (£45.7 billion).

The UK is also becoming one of the greatest forces on the global entrepreneurial stage. According to the 2017 Global Startup Ecosystem Report, London outranks Beijing as one of the best places on the planet for startups. The UK capital’s growth index is even more impressive, outperforming investment giants Silicon Valley and New York City, suggesting that the UK could be the best city in the world for new entrepreneurs.

One reason for these great conditions is the increasingly diverse options businesses have for funding growth. As bank lending was deeply affected by the financial crisis of 2008, the past decade has seen the development of alternative funding options made more accessible by innovative financial technology (fintech):

• Crowdfunding: raising money from a large number of people, each of whom contributes a relatively small amount, through an online platform.
• Peer-to-peer (P2P) lending: issuing of loans by individuals over an online platform without the mediation of a bank.
• Business angels: private investment for early-stage companies that also can benefit from mentoring and connections from investors.
• Venture capital: institutional investment that also offers board support for growing companies.

In spite of a slowdown from the high growth of 2011–2015, 2016 was a strong year for alternative finance in UK small businesses.

• £2.2 billion in total was invested into SMEs by equity providers, according to the British Business Bank.
• Venture capitalists were dubbed the most active type of investor, but crowdfunding, involved in 25% of all 2016 equity deals, is catching up.
• P2P lending raised £3 billion, with some platforms, once seen as a rival of banks, entering partnerships with traditional financial institutions.

If you’re an entrepreneur, deciding which type of investment is best for your business and which firms or platforms to approach can be challenging.

If you’re an investor, you know you can help make the UK the world’s destination for innovation, but you might not know what businesses to invest in.

Learn more about what each kind of investor is looking for or see the latest opportunities UK entrepreneurs have to offer at the Next Round Investment Conference, 15th November at 12:30 PM.

Companies you will meet:

Grab your early bird ticket now!