The Silicon Valley Bank (SVB) has published their report on the state of the Startup scene in the UK. And, according to the authors, the UK is preparing for a “new reality” as a “healthy recalibration” is occurring.
The UK has been a hotbed for young, innovative companies. Forward thinking tax programs like the EIS/SEIS have incentivized investment in early stage companies while an ecosystem and culture of entrepreneurial risk-taking has been encouraged. But in light of this background, entrepreneurs are “adopting a new attitude”, explained Greg Becker, CEO of SVB. The SVB data was culled from a survey of 929 respondents with the bulk coming from tech (68%) and the balance coming from the Healthcare (15%) and Other (17%) sector.
Some interesting data points from the SVB research:
- Access to talent is the number 1 issue for respondents. “Access to foreign talent and [the] ability to bring people into the UK is the key.” Lack of skilled workers hurts the bottom line.
- A majority have at least one woman as an executive (53%)
- 83% expect M&A to remain robust with acquisitions expected to match or exceed 2015.
- VC funding expected to be the top source of finance (40%)
- Raising capital is “extremely or somewhat challenging”
- A Brexit would be negative for entrepreneurs significantly reducing jobs and investment in the UK
- While 58% believe business conditions will be better than year prior, this represents a 21% drop over the last two years
[scribd id=303699158 key=key-PjhJJfSCsmjmIDfnMPJp mode=scroll]