March 27 ,2017 | by Helen Gould

Research reveals investment needs of UK’s early-stage businesses

Investment needs of UK’s early-stage businesses

Research from the UK Innovation Hub and Tech City UK has revealed what early-stage businesses believe are the most important factors for raising external finance.

The research found that start-ups believe that personal trust and chemistry is the most important factor, whilst access to a wide network of investments is also considered to be important, cited by three-fifths of respondents.


Start-ups also feel that a personal relationship with an investor is important, with over three-fifths saying that they would find an investor that provides them with guidance and coaching valuable.

The research also revealed the types of investors that start-ups would consider, with angel investors being the most popular choice, cited by 66 per cent. This was followed by VCs at 54 per cent, a strategic investor at 43 per cent and an accelerator programme at 39 per cent.

Other types of investment that start-ups would turn to include a bank loan, cited by 14 per cent, whilst just 4 per cent would consider peer-to-peer lending.

When questioned on what start-ups would use the money for, 27 per cent said customer acquisition, 26 per cent said that they would use it to develop their products, and 19 per cent said that it would go towards talent.


The UK innovation hub is a government-backed programme that will focus on investing in early-stage start-ups.

Commenting on the hub, Innogy SVP, Innovation & Business Transformation Thomas Birr said: “At the Innovation Hub we’re eager to challenge convention and develop dynamic partnerships that advance the ambition of our founders. This research has provided us with a guide to ensure we can work with our future investments in the best way possible – as determined by them.”

Helen Gould

Helen is a News Writer for LSBF who writes about education, careers, sustainable business, and women in business.

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