here on the decline in investment into the UK start up scene in H1 2016, is worth a read for anyone interested in the sector.
By their own admission, the key reason they give for this decline is guesswork. The uncertainty around Brexit, they say, is the prime driver.
They make absolutely no mention of the lack of ROI for Crowdfunding investors, despite highlighting the fact that this financing channel is the dominant one. Surely some consideration has to be given to investor fatigue. Back in 2011, 12 and 13, this was all good fun and early adopters poured in. However the total lack of credible business plans produced in those three years by the largest player, Crowdcube, has led to nothing but utter and total disappointment. Its one thing to tell people that investing in start ups is unlikely to give you a return but if the next sentence mentions Facebook and Dragon's Den, the original warning is lost.
Just look at the facts. Up until the result of the Brexit vote, everyone expected a win for Remain. So on the 23 June, we all got a massive shock. But H1 ends in June so the figures only include 7 days out a possible 180 in the half, when the result could have had a real influence. Looking through the report the deal numbers are holding up well for the first 4 months of H1. Isnt it far more likely that the series of failures and scandals that have marked HI have dented investor confidence? Certainly investors we talk to think so. H2 will show if Brexit is having an effect or not.
Why we ask is this not even considered?