Volpit, the UK’s startup investment platform has published a report today that reveals how the Financial Conduct Authority’s (FCA) new policies could give a £31.4 billion boost to UK startups.
The report, which is called ‘Equity Investment – It’s Your Business’ has revealed that there is a large portion of the UK’s population that are willing and, following the FCA’s new rules, are now able to invest in business startups through Volpit.
To demonstrate the size of this national trend, 40 percent of UK adults say they are keen to invest in a new business, resulting in an excess of 20 million adults that could support UK startups over the next year.
Nearly two in every five people (30 percent) said they would invest around £500 into a new business, and 29 percent would invest a minimum of £1,500. That’s a total of £31.4 billion potential investment that could be injected into the UK startup ecosystem in the next year.
Based on a recent study, the average investment required to start up a new business is just under a whooping £94,000. With 40 percent of people in the UK willing to invest a grand total of £31.4 billion per annum, and the average investment required by startups is £94,000 – a new generation of 330,000 businesses could potentially be created in the next year.
Justin Nothling, Co-founder of Volpit comments on the findings report: “The FCA’s new policy is a huge deal, however very few ‘everyday investors’ really understand what this means for them, and the greater UK economy.
“This industry report is our way of promoting awareness of the FCA’s new regulation and estimating the potential affect it could have on the UK’s startup scene. We are expecting massive growth of the angel investor market and a lot more innovative startups funded as a result. Volpit is excited to be enabling this kind of investment into the startup ecosystem.”
Volpit’s mission is to empower passionate entrepreneurs with the tools they need to bring their ideas to life. The team’s mantra is: ‘anyone can invest in anyone.’
For more information, or to request a copy of the report, please contact Tashia Cameron or Lisa Malyon at firstname.lastname@example.org or call
0203 551 3954
About the Report:
The Equity Investment: It’s Your Business Report involved a national omnibus survey of 1,000 employed adults in the UK. The study was carried out between the 5th and 7th March 2014.
Volpit was founded by Simon Oberman, Justin Nothling and Patrick O’Flaherty in December 2012.
The lightbulb moment came when the group embarked upon a discussion about the lack of effective and supportive platforms when searching for start-up funding. A few months of debating later, the idea of Volpit began to take shape and in December 2012 the team registered Volpit Limited with Companies House.
Despite their diverse set of backgrounds and skillsets, they team found commonality in their visions of the future as they exchanged and built upon the ideas of one another.
Volpit’s mission is to empower passionate entrepreneurs with the tools they need to bring their ideas to life in order to secure the support of other passionate people around them. The team’s mantra is: ‘anyone can invest in anyone.’
Startup Success Rates in the UK
The startup trend continues to embrace the UK, with 527,000 startups formed in 2013 – a five percent rise since 2012. Seven percent of all new businesses in the UK are owned by those aged 18-30 – a figure that has raised by 45% in the last 12 months.
The sad but true fact is, that out of all businesses started last year, a third, or 175,000 of them will fail within their first 12 months – many of which blame lack of funding, support and poor cash flow to be the main cause of failure.