Posted: Mon 10th Dec 2018
With Brext looming, investment in early-stage businesses in the UK looks set to reduce, it has been claimed.
The comment was made by Frances O'Brien, head of private markets at equity crowdfunding platform Syndicate Room, in a new report outling Britain's 100 fastest growing businesses.
"The European Investment Bank (EIB), which promotes innovation and ensures growing businesses have access to finance when they need it most, has invested more than €117bn into British SMEs," she said.
"Herein lies the problem: the EIB invests solely into European ventures.
"There's no getting away from the fact that EU venture funding is the single largest source of startup capital on the continent and with Brexit looming, UK early-stage finance is at risk of drying up.
"In 2016, the EIB invested 27% of its remit into UK businesses. In 2017, following the vote to leave, this figure fell to 8%."
O'Brien added that EIB's contribution to business growth isn't just about money as it also "offers klout, spurring further funding from family offices, pension funds and those otherwise less willing to take a chance on younger ventures".
She said if Britain wants to remain innovative, "we need to find a new way to collaborate".
The report follows a call by MPs last week for the government to explain how EU small business funding will be replaced post-Brexit.
Britain's fastest growing businesses
Energy business Bulb tops the list of Britain's fastest growing companies with a 350% growth over the past three years.
Fashion search engine Lyst (135%) is second and biotech firm ReViral (59%) comes in third.
In 18th place with 24% growth is market research firm Streetbees.
CEO and co-founder Tugce Bulut is a keynote speaker at Enterprise Nation's StartUp 2019 event in London on 19 January. She's one of more than 100 speakers across 11 interactive zones.
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