Nii Cleland and Darrell Coker, cofounders of Flair Football

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The COVID-19 pandemic sparked a wave of panic among investors in the early months of 2020, with many investors fleeing early-stage startup deals. 

By March, almost one-third of investors had pulled out of UK seed funding deals amid fears that the pandemic was about to trigger a global recession, according to data from SeedLegals.

And new research – put together by coworking space Plexel and market database Beauhurst – has revealed that more than 1,000 startups have collapsed in the UK since. 

The data shows a grand of 1,067 high-growth businesses filed for administration, liquidation or dissolution since the start of lockdown in the spring. 

In an effort to save Britain’s burgeoning tech scene from going under, Chancellor Rishi Sunak devised a £250 million “Future Fund”, managed by the state-funded British Business Bank, and designed to save promising startups from the brink of collapse. 

The scheme has handed out some £588.8 million ($700 million) in assistance to date, exceeding its original target, across 590 companies. But in spite of Sunak’s best intentions, some founders attacked the scheme’s “egregious terms”, and warned that it risked excluding already-marginalized founders from disadvantaged backgrounds. 

Business Insider spoke to six UK startup founders that were forced to …read more

Source:: Businessinsider – Tech


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