Brexit vs Deal Flow

Since Britain voted to leave the European Union in June 2016, it has been reported that the UK economy has received ever-greater levels of private investment into the capital. A record £2.99bn was invested in tech SMEs, while a record £46bn was invested into tech-focused funds in 2017 – a 600% increase on 2016.

EISA commissioned a national survey of more than 2000 respondents to uncover how Brexit negotiations are affecting the sentiment of investors towards SME investment in 2018.

The analysis makes for an interesting read.

Here are a few of the key takeaways from the report:

• 29% feel Brexit will strengthen SME productivity
• 28% feel knowledge intensive companies such as those in the energy-tech, medtech and fintech arenas will benefit as a result of Brexit
• Over a quarter of affluent investors feel more encouraged to invest in SMEs after Brexit
• 22% of 18-34 years old feel more encouraged to invest in UK SME opportunities as a result of Brexit, whilst 18% are encouraged but holding back until after Brexit
• 20% of respondents with investible assets of £75 – £100k+ want to invest but are holding back until after Brexit

Mark Brownridge, Director of EISA, adds that “Across all sectors, but especially among fintech, medtech or energy-tech spaces, there is a strong desire for growth and expansion. While the EISA will continue to work with government bodies, it will be entrepreneurs – the architects of a post-Brexit future – who will make a success of Brexit and propel the economy forward outside of the single market.”

Read the full report here.