According to the recently released Tech Futures Report, almost a third of Tech City business owners feel that their enterprise’s success if hindered by difficulties accessing the necessary capital. Although many are managing to finance themselves through a mix of angel investment, venture capital firms and bank loans secured on personal assets, they believe that investors are too risk-averse in the current climate and that banks are not dishing out enough cash. In addition, tentative links have been made between the lack of cash available to the flagship tech hub, and the redundancies experienced by staff in a fifth of Tech City companies.
The funding gap in UK science and technology startups has been acknowledged by the Government and the media, who have (somewhat melodramatically) dubbed it the ‘Valley of Death‘. It is interesting to have their findings echoed on the ground among the companies themselves.