Tech Firms Finding Funding Despite Pandemic

15 Sep 2020 | 10.25 am

Tech Firms Finding Funding Despite Pandemic

Mason Hayes & Curran surveys the sector

15 Sep 2020 | 10.25 am

Tech companies continued to successfully source fundraising during the Covid-19 lockdown with no major challenges, according to a survey carried out by Mason Hayes & Curran.

MHC’s Tech Companies: Funding Innovation Survey was carried out at a recent webinar hosted by the firm and attended by over 100 investors, advisors and representatives from tech companies.

Despite the challenging business environment, just under half of the survey respondents said that they are cautiously optimistic about fundraising streams remaining open for tech companies into the final quarter of 2020.

One in four of those surveyed by MHC believe that businesses are entering a time of great opportunity to raise funding; however, three in 10 expected the next few months to be very challenging for fundraising tech companies.

Some 85% of respondents said that funding transactions completed during the lockdown had been finalised without major challenges.

MHC’s research shows that straight equity investment is the most common form of fundraising for tech businesses (48%), followed by equity/debt hybrid at 39%. One in eight respondents stated that venture debt is the most common for them, while no-one reported using alternative lending.

Commenting on the results, Robert Dickson, corporate partner with MHC, said that it was pleasing to see the degree of optimism present. “The operating environment for businesses has been challenging, but there are many opportunities for tech companies on the horizon.

“As we become more reliant than ever before on technology because of the pandemic, we are seeing tech companies innovating and creating products that provide solutions to real-life problems. Investors are attracted by this innovation and creativity.”

 

 

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