In this report, which we are delighted to have worked with Barclays Bank upon, we have used multiple evidence bases and data, to analyse the use of different types of finance by scaleups, delved specifically into their working capital usage and needs, and sought to understand better the interplay between debt and equity funding.
Scaleups play a vital role in driving productivity and growth in the UK economy. They are fast-growing, innovative, ambitious and international businesses operating across all regions and sectors contributing £1.2 trillion yearly to the UK economy – more than half of UK SME turnover despite being more than 0.6% of the SME population.
As we seek to remove barriers to their further growth scaleups consistently cite accessing finance – both debt and equity – as one of their critical challenges. Moreover, more than half of all scaleups say they do not currently have the right level of finance to fuel their future growth aspirations and regional disparities persist.
If we are to address this ‘scaleup finance gap’, it is even more vital, that we have a deeper and richer understanding of the finance journeys of scaling businesses so that the debt, venture and equity finance providers can deliver the optimal finance for their growth.