Raising Finance

Young investors have their eyes on internationally scalable technology businesses

2 min read

23 July 2018

Tech SMEs are increasingly being asked by investors to prove their international ambitions before landing crucial funding.

A new UK Business Angels Association (UKBAA) report into the role that UK investors want SMEs in the technology sector to play on the international stage post-Brexit, revealed that 4.2 million investors said they would be more inclined to invest into an internationally scalable business.

The research also revealed that 15% of investors believed an international outlook from an SME is important when considering whether to invest or not. Some 11% stated that having intellectual property /infrastructure that can be scaled globally is vital.

A further 4.2 million investors said it is crucial that a lead angel who is sophisticated in SME investments has previously invested in startups which they are considering investing in.

The UKBAA added that the findings come as 13 million investors declare they are looking to invest in drone tech in 2018 – more than any other new-age technology.

“The research reflects the huge range of innovative technologies, products and services being developed here in the UK and demonstrates a strong capacity for scale and market disruption,” said Jenny Tooth, chief executive of the UKBAA.

“We are delighted to continually recognise and highlight the success stories of the fantastic entrepreneurs in these sectors, as well as the contribution made by their investors who bring such vital finance and support investments.

“At the UKBAA, we are supporting the UK’s tech growth with capacity building actions, including new regional Angel Hubs, combined with our new national e-learning programme on angel investing”.

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SMEs looking for investment would do well to target younger investors. According to the UKBAA’s research, 36% of 18-34-year olds said that having IP/ infrastructure that can be scaled globally is important when considering whether to invest or not in a SME.

An even more impressive 47% of the same age-group said they are more inclined to invest into an internationally scalable business as a result of Brexit.