UK start-ups anticipate positive business conditions
Further growth is expected in the technology start-up sector this year, with the majority of executives confident about the coming months.
A report by Silicon Valley Bank revealed that 83% of new technology firms in the UK anticipate positive business conditions in 2013, following on from a strong 2012.
Some 66% of respondents in the survey revealed that business conditions had improved last year compared to 2011, while 73% met or exceeded revenue targets.
Nearly half of the UK start-ups earning revenue expect their company to be profitable this year, compared to just 26% of their US counterparts.
Bindi Karia, vice president at Silicon Valley Bank, predicts a strong year ahead for the "thriving" tech start-up sector.
"These are exciting times for the UK tech scene," she said. "Executives are optimistic and working hard to develop the 'next big thing.'"
However, she pointed out that many executives have concerns around how they should fuel the next level of growth
A total of 39% of respondents say they are looking to raise capital from venture capital and angel investors, yet the Startup Outlook findings reveal that there is a significant funding gap between Seed and Series A funding.
Government initiatives were cited by executives as having a vital role to play in growing and supporting the start-ups industry sector.
As many as 56% want greater access to government grants and funds designed specifically for start-ups, while 52% would like to see tax reforms.
Nevertheless, Joshua March, co-founder of start-up social media business Conversocial, maintains that support is out there for those that need it.
"The tech scene in London has evolved dramatically since we started working on Conversocial in 2009," he said. "One of the most exciting changes is how much easier it is to hire great developers than just a few years ago."
"Undertakings like Silicon Milkroundabout and the Tech City initiative, backed by so much government and press support, have turned 'start-ups' into a viable career path."
The report also revealed that hiring is a key priority for UK based start-ups in 2013, with nine out of 10 respondents planning to recruit.
Furthermore, 77% of start-ups admit finding workers with Science, Technology, Engineering and Maths (Stem) skills is absolutely critical to the success of their business.
Copyright Press Association 2013