In recent years, the startup scene in UK has been booming rapidly. As one of the world’s financial centers, London plays host to thousands of technology companies and startups every year. For investors who want to find startup investment opportunities in UK, it can be very exciting yet also overwhelming due to the sheer amount of companies out there. This article will provide insights on how to identify the hottest startup investment opportunities in UK for 2020.
Focus on fintech, AI and bio-tech for hottest startup investments
Many experts agree that three sectors stand out when looking for startup investment opportunities in UK for 2020: fintech, AI and bio-tech. London has established itself as the fintech capital of Europe. According to London & Partners, London’s fintech sector attracted over $4.1 billion in investment last year. The UK also has the most AI startups and development after the US and China. In the bio-tech sector, places like Cambridge and Oxford foster a strong life sciences startup environment. Overall, these three sectors provide the hottest prospects for startup investments in UK currently.
Leverage startup accelerators to find rising startups
Startup accelerators are organizations that provide education, mentoring and financing for startups in exchange for equity. The top accelerators in UK like Seedcamp, TechStars and Entrepreneur First work with hundreds of startups each year. They can help investors identify star companies in early stages. By leveraging the network and resources of accelerators, investors gain access and insight into startup investment opportunities before others.
Attend startup events and conferences to connect with founders
Events and conferences are great ways to connect directly with startup founders and evaluate investment potentials. Some major events for startups in UK include London Tech Week, Slush and TechCrunch Disrupt. By attending these events, investors can better understand the startup’s business, products and team dynamics. Interacting with founders in person also builds an emotional connection that helps convince them when investing.
Research government incentives and subsidies for startups
The UK government provides many incentives like R&D tax credits and the Seed Enterprise Investment Scheme to support startups. Knowing these policies allow investors to identify startups that can maximize government subsidies and have cost advantages. For example, some regions provide better tax incentives so startups there may be more worthwhile to invest in.
In summary, investors can find the hottest startup opportunities in UK 2020 through focusing on top sectors like fintech, leveraging accelerator networks, attending critical startup events and researching government incentives. With the right approach, UK’s vibrant startup ecosystem provides abundant options for those seeking the next big investment.