Closing the fast-growth funding gap
It is clear to see there is huge resilience in the Lancashire economy as it recovers from coronavirus. Healthy numbers of new businesses are being registered across the county and demand for Two Zero’s Scaleup Resurgence programme shows that fastgrowth remains a priority.
But the changes brought about by the pandemic bring both challenges and opportunities to scaleups in Lancashire and across the UK.
A new report from the ScaleUp Institute, Innovate Finance and Deloitte highlights that coronavirus has widened the gap between the capital scaling businesses need and what they can access to £15bn per year.
The report, The Future of Growth Capital, highlights a deficit of institutional funds as well as demand-side constraints, suggesting there is a lack of willingness from management to use external growth capital.
This added to the economic uncertainty brought on by Covid-19 presents a major challenge in the way scale-up businesses access external capital such as equity funding.
The changes brought about by the pandemic bring both challenges and opportunities
But as well as Covid-19 bringing difficulties to the scale-up community, will it help to address some of the challenges?
The pandemic brought about huge advances in the way business is done. One example is the rise in video calling rather than the traditional meeting, bringing Lancashire’s innovative, ambitious scale-ups closer than ever before to the institutional funds of London and further afield.
As Lancashire emerges into a changed business landscape, Two Zero will use its position in the Lancashire economy to encourage our fastgrowing companies to think bigger and better so the whole county can feel the benefits.
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