The UK’s investment landscape is always changing – with trends regularly emerging across investment types, industries, and geographical locations.

We recently attended a Tech for Good Unconference with Tech4Good South West to learn more about the startup investment trends specifically affecting purpose-led tech brands. Here are three of our key takeaways, layered with some of our own insights.

1. Tech investment is hard to come by

Tech companies in the South West are struggling to raise investment, largely down to what’s being described as a “chicken and egg” situation. Businesses need funding in order to prove their growth potential, but risk-averse investors want to invest in those that can demonstrate real, commercial success.

We know from our own conversations and research that this is happening across the investment lifecycle and is particularly prominent in some sectors. This includes climate tech, an emerging field that needs to scale quickly to meet global environmental goals. However, as it’s such a young field, it doesn’t have the track record of success needed to alleviate investors’ concerns.

2. Grants offer an alternative to traditional funding

Some companies are trying to overcome this “chicken and egg” challenge by applying for grants, such as from the UK Research and Innovation (UKRI)’s Innovate UK agency. This provides an opportunity for early-stage companies to develop their solutions further and connect with potential partners, while also proving to investors that they have an idea worth backing.

We also know that applying to accelerators and incubation hubs is a popular route for early-stage businesses that want to strengthen their chances of raising funds. Although these don’t always present funding opportunities, they offer companies the mentorship, equipment, and connections to turn ideas into proof of concepts, and demonstrate to investors their viability.

3. Businesses need investment strategy support

A common pitfall for early-stage companies today is having the right investment strategy. Many don’t know where to start, and others don’t know how to attract the right investors for their growth stage.

One piece of advice that we regularly share with businesses is to create a strong value proposition. This should clearly outline what you do and what sets you apart from others in the sector. When you distil your big ideas into easily communicated concepts, you can start to stand out in an investors’ very busy inbox.

Plus, it gives you something to review your progress against regularly, helping you to figure out when it’s time to set new growth goals.

Start strengthening your pitch deck with these tips

The investment journey is a difficult one, but having a strong pitch deck can help you pique investors’ interest and put yourself forward with confidence. We explore how to create a pitch deck for early-stage impact brands in this blog, based on advice from angel investors themselves.