In response, fast-growth companies must focus more resources on finding funding – across different categories of investors and internationally. Despite this need to expand their funding horizons, 92% of respondents select the UK as the primary location for sourcing possible investors. With the fast-growth sector outperforming during the pandemic, investment appetite is likely to be high, but the companies must step up their short-term efforts – including looking outside the country’s borders – to seek out the funders that can help drive long-term success.
4. Working with large corporates is desirable but challenging
With funding representing a key barrier to future growth, many high-growth companies are eyeing an alternative source of investment – corporates. That makes sense for both parties: fast-growth companies can benefit from the corporate’s huge financial firepower, knowledge and customer base, whilst corporates are equally eager to access the innovation and growth of these ambitious companies. Little surprise then that 61% of fast-growth companies want to explore a relationship with large corporates, specifically because they see them as a preferred provider of investment.
However, our research identified a number of challenges for fast-growth companies, from finding the right corporate and identifying key stakeholders within it, to agreeing contractual terms and aligning working practices and styles. Clearly, both sides need to work harder to understand each other’s needs, to collaborate better and drive future growth. Attention, commitment and investment are vital in all elements of these relationships, including funding and resources, inclusive procurement policies, dedicated contact points and management time.