According to IW Capital CEO, Luke Davis, entrepreneurs are increasingly reconsidering the London-centric view of business, entrepreneurship and investment, with this shift having been accelerated by the Covid lockdown and new restrictions coming into force.
According to Mr Davis, house prices fell in London during July and August, despite record monthly property sales the country. This, he states, is due to an ‘exodus’ to commuter towns and more rural areas.
The IW Capital CEO says that the UK capital has long reigned over investment in start-ups and private companies, with deals done in London making up the majority of the UK’s investment landscape. In other words, more deals are done in London than the rest of the UK as a whole.
There is one exception to the rule, however, and that is Angel investment. According to Mr Davis, this personal investment, alongside the government’s Enterprise Investment Scheme, allows investors to support individual, small and upcoming businesses across the UK.
He added that a 2018 initiative from the British Business Bank – via the Regional Angels Programme – pledged £100 million to help curb the regional inequality in start-up investment.
Speaking on the need to move entrepreneurship to new investment hub, Mr Davis continued:
“London has dominated the UK finance and investment landscape since the early days of global trade. Investors, including myself, have for years commuted to London to hear pitches, meet entrepreneurs and make decisions. But now, as people migrate away from London, the way is much clearer for smaller towns and cities to become hubs of investment and innovation of their own.”
“I have seen a shift in entrepreneurs who are now actually considering why they need to found their start-up or small business in London. For a long time, choosing to start a firm in London has been almost gospel, but this is no longer the case.”
“For instance, in Brighton there is an incredibly diverse community of business founders and ideas that deserve recognition and funding just as much a London-based counterpart. I really see this as a turning point in regional investment.”
