More than half of scale-up businesses in the South West with a turnover of more than £1million are looking for funding, new research has found.
Some 55 per cent of scale-ups in the region are looking for investment, the ‘Dream Bigger: Funding Ambition’ report from financial and professional services firm Smith & Williamson found.
The region – and Bristol in particular - is often recognised as an ideal place to start and grow a business, but the number of scale-ups in the South West accounts for just two per cent of the total.
And a lack of access to finance could be part of the problem, the report suggests.
Business founders cite building infrastructure, strengthening management and financing R&D as the primary motivators for seeking investment in their business.
But seven in 10 companies were unable to secure finance at the first attempt, with 39 per cent failing more than three times and nine per cent making five or more unsuccessful attempts.
The most common route for raising external finance successfully is equity investment from family or friends (52 per cent), while the majority of those who have raised external finance admit wasting time and resources by pursuing the wrong type of investor (55 per cent).
Peter Ball, scale-up lead at the Bristol office of Smith & Williamson, said: “Securing investment into a business shouldn’t be a blind leap of faith.
“Preparation is key. To be investor-ready, businesses must ask themselves difficult questions, ensure a strong management team, something that is crucial in the eyes of investors, and have a clear plan of action in place.”
