Leading fund manager Neil Woodford has criticised UK investors for taking a “short-term” approach to tech start-ups, arguing that more capital must be made available for entrepreneurs.
Speaking to the BBC as part of their Tech Talent coverage, Woodford said, “We have been appallingly bad at giving those minnows the long-term capital they need.” He says financing is a major issue in the UK, arguing that investors are not looking at the long-term gains and want investments that are too short-term.
The BBC are currently investigating why so many huge tech firms such as Facebook and Google are headquartered in the US. Whilst the UK is generally good at developing lots of small scale businesses, a lack of long-term funding is the reason many do not take manage to step up to the next level.
Rohan Silva, a former advisor to David Cameron, praised the government’s tax breaks for small-scale businesses but said finding “scale-up cash” needed to help companies grow is still “a big challenge”.
“There is a big role for government in providing a bunch of that funding, particularly when it comes to research in the laboratory and helping that go to market,” he said.
