‘Raising money is difficult’: British startups finding it harder to access funding
British startup founders have warned that access to funding is drying up as potential investors become more risk-averse in light of the escalating cost of living crisis.
Startups are among the businesses struggling with higher costs as soaring energy bills and the highest rate of inflation for 40 years threaten to plunge the UK economy into recession.
There have been warnings of a “lost generation” of small businesses as soaring gas and electricity prices begin to hit cafes, restaurants, shops and salons, while tech firms say Brexit has made it harder to attract talent and to export digital services to the EU.
Startups, however, face particular challenges. Here, four founders at different stages of their careers tell the Guardian about a lack of support for first-time business owners, a dearth of growth funding and harsh terms from investors stifling startups in the UK.
Solomia Boretska, 31, worked as a research scientist before she founded her first startup.
Her company Lendo Labs is building technology to facilitate the shift to a circular economy by making it easy for customers and businesses to find rental products locally.
Its current focus is on renting out medical equipment across the UK, with plans to add more products, such as furniture.
“Our goal is to raise £500k to £1m this year but with the downturn of the markets, venture capital investment is slower than ever. The focus of investment has also shifted.
“Fast returns on investment have become a priority for investors rather than long-term strategy. But brilliant ideas don’t just appear; they require testing and lots and lots of mistakes.”
Lendo Labs has applied for a number of grants worth between £50 and £80,000, and the founders hope to apply for larger ones in
Read more on theguardian.com
