London is an ideal location for technology companies, as it has a deep resource of experienced candidates what ever field or niche skills your business requires then London has an abundance of. Naturally being the capital, it is an expensive place to live and work and therefore salaries are high as are all associated costs such as office space.
Private Equity funding
One of the big advantages that London has is it is the base of the UK financial system, and as London is home to some of the biggest banks and investment funds in the World, it is the natural place to seek and find funding for your business.
There is a lot of interest in Technology businesses in the City who understand and appreciate that investing in a tech business can potentially yield extremely high financial returns, in the order of a twenty-fold return on investment.
Investing therefore in a local business makes perfect sense, if the team are also London based then it is easier to monitor and have face to face meetings.
Is the cost of living just too high?
London is expensive and that is a factor in the market, but if a business has sufficient potential and it is properly funded through the Private Equity and Venture Capital route, then this is not a limited factor, high salaries and high bonuses are very motivating and attract the best talent.
Are there Government incentives?
A very positive feature of the UK Economy is the availability of Government schemes that reduce investors risk and tax, the Enterprise Investment Scheme (EIS) and the smaller Seed Enterprise Investment Schemes (SEIS) off very attractive benefits meaning that 50% or more of the risk in the event of a failure is covered by the Government.
Government backed loans are also available to help finance and support growing businesses, and those exporting can get support from the Department for International Trade to.
These together make the UK a very attractive place to start-up a technology business and to grow it during the initial phase of development.
What sort of niches are getting funding?
It is very varied and interesting, but popular niches now, in the technology sector, include Software as a Service (SaaS), Fintech, ERP (Enterprise Resource Planning) and E-Commerce in general. Companies in this niche generally can raise funds easily especially if they have an experienced team with a proven track record.
What are the ingredients to a technology success story?
Clearly the product needs to be innovative and something that adds value and can scale up, from the team point of view an organisation needs the right CEO, COO and CFO, all of which working together take a business from a concept into a success story, and if luck and the product is right, then the return to investors can be extremely rewarding. All of these are available in the London market.
Where to find an experienced CFO of FD with a background in Technology?
London based FD Capital Recruitment is a niche provider of Finance Directors and Chief Financial Officers, its founders, and Directors themselves worked in the technology niche and have a great reputation for finding the best candidates in the market. They work closely with Private Equity Houses and Venture Capital funds, plus high net worth individuals and have a great reputation for matching the perfect candidates with the perfect roles.
If you are a growth business or a Start-up then make sure to reach out to their team, they can offer great free advice as well as finding the ideal candidate for your business requirements.
London is expensive but its depth of human and Financial Capital makes it the perfect place to setup and grow a technology business.