Fintech businesses have most ambitious fundraising plans, research shows
Fintech businesses are the most ambitious when it comes to their fundraising plans, according to a report from professional services and Big Four firm EY.
The EY Fast Growth Tracker surveyed hundreds of UK entrepreneurs about their future funding plans and found that 34 per cent of fintech firms are aiming to raise £5 million for their next fundraising round.
Fintech businesses were also found to have the highest expectations when it comes to increasing revenues, with two-thirds of respondents expecting a 50 per cent rise in revenues over the next year.
The majority of entrepreneurs surveyed were found to have recent experience of raising funds, with three quarters having completed their last round of funding within the past two years, whilst around 71 per cent are planning to look for funding in the next 12 months.
Respondents revealed their biggest challenges when it comes to fundraising, with accessing finance being cited as the main barrier by 50 per cent, followed by finding the right people at 41 per cent.
More than 30 per cent of respondents said that they were having difficulty finding a suitable investor for their latest round of funding. As a result, 62 per cent of entrepreneurs have turned to overseas investors to achieve their fundraising ambitions.
Commenting on the report, EY Fast Growth Platform Partner Richard Goold said: “This research shows a disparity between matching ambitious enterprises with suitable investors, leading many to look overseas to find the growth capital they need.
“To make our start-ups a British business success, more routes to funding need to be created to ensure that these bright, entrepreneurial businesses are enabled to flourish.”