Where is the next innovation hub?
Luke Davis, CEO of IW Capital, explains why London is no longer the obvious choice for entrepreneurs. ...
New restrictions and the continued effects of lockdown have meant that many people are reconsidering the London-centric view of business, entrepreneurship and investment. July and August saw house prices in London fall, despite a record month of property sales across the country, as lockdown fuelled an exodus to commuter towns and more rural areas.
Investment in start-ups and private companies has long been dominated by the Capital, with the number of deals in London making up the majority of the UK’s investment landscape. In other words, more deals are made in London than the rest of the UK combined.
One type of investment, however, is working especially hard to reverse this trend – Angel investment. This personal investment, alongside government programmes such as the Enterprise Investment Scheme, allows investors to support small, growing businesses on a case-by-case basis across the UK. A 2018 initiative from the British Business Bank pledged £100 million through the Regional Angels Programme to help curb this inequality.
Luke Davis, CEO and Founder of IW Capital, discusses where investment hubs will arise outside of London:
“London has dominated the UK finance and investment landscape since the early days of global trade. Investors, including myself, have for years commuted to London to hear pitches, meet entrepreneurs and make decisions. But now, as people migrate away from London, the way is much clearer for smaller towns and cities to become hubs of investment and innovation of their own.
I have seen a shift in entrepreneurs who are now actually considering why they need to found their start-up or small business in London. For a long time, choosing to start a firm in London has been almost gospel, but this is no longer the case.
For instance, in Brighton there is an incredibly diverse community of business founders and ideas that deserve recognition and funding just as much a London-based counterpart. I really see this as a turning point in regional investment.”
For more information visit: iwcapital.co.uk
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