Startup office

The vast majority (84%) of UK entrepreneurs are looking to raise up to £10m each next year.

That’s according to a new report by EY, which also found that 72% of those surveyed want to raise up to £5m.

The EY Fast Growth Tracker interviewed 371 business owners about their fundraising and exit plans. The report found that funding continues to be the biggest hurdle for UK business success, with half of respondents saying it was the largest constraint to their growth.

Despite 61% of those surveyed completing a funding round in the past year, 40%  said the process was a distraction to running their business.

According to the findings, a vast majority (62%)  of entrepreneurs are targeting overseas investors to raise capital, perhaps driven by the fact that over a third (39%) were unable to find suitable investors in their previous funding round.

Richard Goold, EY Fast Growth Platform Partner, commented: “Funding has historically been, and continues to be, a hurdle to growth for the country’s entrepreneurial businesses. This research shows a disparity between matching ambitious enterprises with suitable investors, leading many to look overseas to find the growth capital they need.

“To make our startups a British business success, more routes to funding need to be created to ensure that these bright, entrepreneurial businesses are enabled to flourish,” he added.

Additionally, more than half of the businesses surveyed (55%) said they expected to grow their revenue by 50% or more in the coming year, with another one in five (19%) expecting a minimum increase of 20%.

Tech entrepreneurs are the most ambitious, with two in three expecting to increase their revenues by more than 50% in 2018.