People - Not Products - Are the Secret to Scaling up BusinessesNovember 09, 2017
Independent study shows investors and businesses fail to see eye-to-eye on what drives innovative companies to attract private investment and scale up.
British businesses are missing opportunities to secure investment, grow and scale up because of misunderstandings in what investors are looking for, according to a new report published by Innovate UK.
‘Scaling up: the investor perspective’ compares the views of investors and scale-up small to medium-sized enterprises on the factors for success. It includes the views of investors both in the UK and internationally.
Mismatch between businesses and investors
The report finds that business leaders consistently underestimate the value investors place on ‘softer’ aspects, for example:
78 per cent of investors thought chemistry was important, versus 53 per cent of businesses
poor communication was a deal breaker for 84 per cent of investors, compared to just under half (46 per cent) of businesses
a lack of adaptability and resilience was a deal breaker for 87 per cent of investors. Only 58 per cent of businesses thought this to be the case