Investment guru says startups need long-term capital to become international
The UK is failing to provide entrepreneurs with the long-term capital needed to create the country’s own Silicon Valley, according to leading fund manager Neil Woodford.
Speaking to the BBC as part of the broadcaster’s Tech Talent coverage, Woodford argued that the UK is failing to realise the global potential of the nation’s startups, as home-grown entrepreneurs hit a brick wall of investment.
Woodford stated that while the UK has seen lots of startups flourish at the initial stages, the country is failing to help small firms kick-on and compete on a global stage.
we have been appallingly bad at giving these minnows the long-term capital they need, he said.
The short-termism in financial investment for startups has prevented the UK from matching the success of the Silicon Valley in the US, Woodford argued.
Woodford founded Woodford Investment Management after leaving his role as head of UK equities at Invesco Perpetua, and was awarded a CBE in 2013 for services to the economy.
Despite recent figures from the National Association of Commercial Finance Brokers (NACFB) showing a record high of 20.7bn in lending to small businesses a year-on-year increase of 29.8 per cent experts have argued that a more long-term approach to investment is required to help companies compete on an international level.
Tech entrepreneur and former adviser to David Cameron, Rohan Silva, highlighted the failure to provide ‘scale-up cash? to small UK firms as the key reason for lack of a global presence of UK enterprise.
there is a big role for government in providing a bunch of that funding, he told the BBC.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
Going through the process of raising investment for the first time can be an anxious period for any small business owner. Here, Crowdcube CEO Darren Westlake tells startup founders what to consider. more»