Entrepreneurs undeterred by pandemic as investors look to back small firms
New monthly data has shown that new business formations in September 2020 reached nearly 30,000 – a record number in the past 13 years. This follows previously reported data indicating that, despite the impact of the pandemic and lockdown restrictions, entrepreneurs have started businesses in high numbers in 2020 while investment into tech start-ups was only slightly down on 2019’s record high.
While the pandemic has undoubtedly impacted businesses heavily, it has also opened opportunities for growth for some firms well-positioned or that adapted quickly. Shares in companies such as Zoom have skyrocketed while significant numbers of IPOs are planned for 2021.
Luke Davis, CEO of IW Capital discusses why now might be a great time to ask for investment: “The last 12 months have been among the most challenging many of us can remember, but one thing that hasn’t wavered is the ambition and creativity of the UK’s small businesses. In 2020 IW Capital helped a number of great companies to grow and reach their potential, notably supplying Transcend Packaging with growth funding that has helped them become one of the fastest growing firms in the UK.
I think the impetus is shifting and investors want to support this ambition and optimism, and if you are an entrepreneur looking to grow and take the next step, now is the time to ask for investment. We are actively looking for companies to invest in and the same is true of the wider community from the conversations I am having.
Working with local residents on redeveloping the pub and hospitality venue Rockwater Hove has shown me how much people want, more than ever, a place to come together as a community, and are willing to invest into that. We are not out of the woods yet, but the drive is there to come out strongly when we are.”
