UK startups need UK backing
If we want the economic growth, jobs and tax revenues that come with a buzzing entrepreneurial economy we need to back our startups.
The UK is a hub for startups, with over 800,000 companies incorporated in recent years. However, only 38% of these companies survive five years post-incorporation, compared to an EU average of 46% and a US average of 51%. This lag in survival rates is attributed to several factors, including a lack of access to investment and challenges inherent to the startup ecosystem.
Domestic investment, however, has been declining, with foreign investors now providing the majority of venture capital funding. This shift has led to a geographical concentration of investment in London, with funding for companies outside the city falling from 33% to 25% of the total. Encouraging UK investors to back local startups, particularly through structures like venture capital trusts (VCTs), can help spread investment and job creation across the country.
VCTs offer retail investors the opportunity to support innovative UK companies, providing a mechanism for investors to share in the economic growth, jobs, and tax revenues generated by successful startups.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
