Two-thirds of tech businesses have difficulty accessing funding in UK

Two-thirds (66 per cent) of media and technology businesses claimed it has been difficult to access the necessary funding in the UK during the last six months, according to a survey conducted on behalf of RSM UK.

Only a third (33 per cent) of businesses surveyed were able to easily access funds in the UK.

Of those who had difficulty in accessing, 37 per cent were eventually able to obtain the funds needed, 24 per cent had to access the necessary funding overseas, and 5 per cent couldn’t obtain UK funding but have not looked elsewhere.

Of those businesses with debt*, 56 per cent have more debt now than six months ago. Just over half (52 per cent) plan to seek a funding round in the next 12 months, and nearly half (48 per cent) say they expect to require further debt funding in the next 6-12 months. This suggests businesses in the sector have no plans to stop raising capital and borrowing, despite stubbornly high interest rates.

Helen Brocklebank (pictured), office managing partner in Birmingham at RSM UK said: “Despite these funding challenges being felt by media and technology businesses, huge efforts have been made across the West Midlands to enable access to investment and ensure acceleration of the region’s tech innovators, as highlighted by Birmingham Tech Week.

“Collaboration across our Birmingham based universities to create a tech ecosystem, TechWM’s funding of a new start up acceleration programme and the announcement of over 1,000 new tech related jobs from our most dynamic organisations show the commitment to make Birmingham an attractive place to invest and grow new tech companies.”

Ben Bilsland, partner and media and technology industry senior analyst at RSM UK, said: “It’s clear that government have put media and technology at the forefront of their plans for the future of the UK economy. Risk capital and funding underpin an innovative ecosystem, so challenges here should be a key concern.

“Without funding, businesses will struggle to innovate and grow in the UK, putting the Chancellor’s ambitions of becoming a ‘science and technology superpower’ at risk. 

“Media and technology businesses aren’t shying away from the rising cost of borrowing and plan to obtain funding in the next year. Our survey indicates they are borrowing more, but prudently. However, government initiatives to open up new forms of funding will be welcomed. The Mansion House Compact is a start, as it’s designed to encourage investment into high growth sectors such as technology.”