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It was feared that investment would begin to dry up as the market declined. However, while business owners and investors may be slightly less confident they are still, by and large, eager to see what the future will bring. The UK offers an ideal situation to begin a business and scale a business:
The other, less heralded, issue with leaving the EU was its potential tarnishing of Britain as a place to do business - and the injection of confidence to other capital cities who may find themselves more able to compete with London.
Paris has recently launched Station F, a centre dedicated to start-ups, Berlin is looking to attract finance and a host of other European cities now seek to interest the highly-skilled workforce that is a requirement for all scale-up businesses.
However, what has become apparent is that few of these cities lack the rounded appeal the UK offers.
Indeed our respondent’s confidence in their own prospects over the next year is only likely to increase.
The UK scale-up market is flourishing, partly due to the external finance available to many within the sector. From angel investors to private equity, there are advantages in getting scale-up investment from the UK.
The number of private equity deals has been steadily increasing in recent years. Arguably, if Brexit was an issue in the UK market then businesses looking to raise external finance would find it a lot harder than they are currently.
There have been several Series A to C investments (the different rounds of investment that a business goes through) into scale-up companies in the UK in recent months. As these represent a confidence in a company’s long term growth, it is hard to argue that investment is shying away from backing the UK as a place to grow a business.
It is generally sensible for an entrepreneur to at least consider “de-risking” their personal position by taking some cash out of a business as part of a private equity deal.
This allows them to begin solidifying their financial position while still having a significant proportion of their work personal capital aligned with the success of the business.
A few years ago, the trend was for an entrepreneur to sell the business entirely and start again. However, following the course of fast-growth businesses in the US, we’re now seeing a noticeable shift to individuals remaining committed to scaling-up their business by either retaining senior positions or large equity stakes.