If you’re responsible for a business in need of investment, you’ll already be aware of the ways in which the Covid-19 pandemic has impacted the investment landscape. With social distancing and widespread restrictions on movement, the inability to network has significantly limited access to the traditional funding routes. So, now that we’re moving towards a place of potential recovery, what will investment acquisition look like?
The immediate future of post-pandemic fundraising
It may be surprising to many, but the general feeling is one of optimism when it comes to pandemic economic recovery. After the hiatus of 2020, hedge fund investors are in the market for new opportunities. The difficulty will come for those SMEs outside of the desirable sector parameters. Because although there is a will to invest, its scope is potentially limited. With areas of opportunity predicted to include:
- Food Industry SaaS. During Covid-19 and the lockdowns, food delivery has experienced a huge boom, it was forecasted that we’d reach 11 million online food delivery users last year, a trend that will likely stay long after precautions ease, making FoodTech a desirable investment.
- Mobility as a Service (MaaS). The application of joint digital channels to enable users to plan, book, and pay for multiple types of mobility services.
- Sustainability. Whether the implementation of Internet of Things (IoT) tech for individual sustainability gains, or the development of global level carbon catching technology. Sustainability has been one of the leading investment interests for the last few years, and interest is not likely to diminish any time soon.
- IoT. Thanks to the pandemic, the uptake of IoT tech has surged in the last year, with billions of pounds of investment furthering the development of smaller, faster, more efficient devices across a whole range of sectors. Its potential is far from exhausted and investors are hungry for more.
- Digital retail services. Online retail hit a 13 year high in 2020. The pandemic forced many reluctant shoppers – and businesses – to embrace digital. Now that they have tried it, they are unlikely to relinquish the convenience. This opens a huge market for improved online retail services.
- Returning services. While there are numerous emerging growth areas likely to benefit, investors also have their eyes on those areas likely to have the greatest comeback once Covid restrictions are lifted. These include retail, hospitality, construction, entertainment, travel, and commodities.
What is the best way for SMEs to access funding now?
While the funding landscape has undeniably shifted, the principles for accessing investment remain largely the same. You can’t go out and actively network. But you can get your business in order.
Honesty, acumen and research are the key criteria for securing investor confidence. By fortifying your business, creating a realistic pitch deck that promotes your USP without misleading projections, and thoroughly researching your potential investors so that you’re not wasting their time or yours, you will be in a position to secure the funding you need.
2021 is an interesting time for investors and SMEs alike. And for many, now will be a time to hang fire and manage with existing resources. But if you’re in the right sector, with the right proposition, investment is there for the taking.