More start-up entrepreneurs prefer acquisition rather than IPOs as a way to quit from the business. UK innovators are facing many challenges like lack of skilled labours and instability in the fundraising eco system to develop their business. As a result, these entrepreneurs wanted to exit from their businesses either by way of acquisition or by becoming a public company.
The survey conducted by Silicon Valley Bank showed that majority of innovators in the UK wish to be purchased rather than seeking IPOs. According to the poll report, 59% of UK start-ups chose to be acquired, while 17% aspire to go public. The survey, which interviewed UK innovators of health and tech businesses, showed that 80% of UK start-up chiefs believe fundraising environment to be more complicated.
Nearly 40% of survey participants hope their future funds to originate from venture capitalists, while 13%of respondents consider private equity as their next fundraising source and 16% consider angel investors. In addition, 83% of executives expect mergers and acquisitions either to outstrip or remain same with 2015 level.
According to 95% of UK start-ups, access to skilled labours is more challenging than any other aspect. The 2013 survey report showed that 89% of UK chiefs considered finding right talent as the key challenge in the business environment.
While commenting on the survey report, Phil Cox, Silicon Valley Bank's president at UK branch, said the bank is confident regarding the UK start-up economy amid the gloomy condition in global markets. He also promised easy availability of funding for start-ups. Cox continued that companies will be concentrating more on profitability rather than on growth in 2016, a move that will allow UK start-ups to hold their position in global economy, as reported by TECH CITY NEWS.
Moreover, 61% of start-ups said that the number of female representatives on their boards is zero, and 47% said they have less female executives. The survey pointed out that companies need to focus on this diversity issue, considering more leading positions for women. Another problem facing the UK start-up sector is recruitment and 26% of heads voted in favour of this issue.
BUSINESS INSIDER quoted chief executive officer of Property Partner, Dan Gandesha, who said UK lacks high-skilled staffs for product development, and at the same time it requires lot of permission to hire staffs outside the European Union. Gandesha is actively hiring for his company following a fund raising of GBP 16 million in Series B round.
Other challenges facing the UK start-up economy are cyber security, foreign trade policies, and conflict between workers and contractors. The UK start-up world is striving to establish itself in the global market despite social and geographic problems facing their business.
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