Home » Culture » The Big Investor Survey 2018 shows interest in startup investing is on the rise

The Big Investor Survey 2018 shows interest in startup investing is on the rise

by Startacus Admin

65% of investors say investing in a diversified portfolio of startups would help them reach their financial goals. The problem? They don’t know how to do it.

New data shows interest in startup investing is on the rise, driven by lacklustre returns in more traditional asset classes. Goncalo de Vasconcelos, Co-Founder & CEO at online equity investment platform, SyndicateRoom, talks through some of the key startup focused findings from their just released research titled the Big Investor Survey 2018.

"This week we released new research titled the Big Investor Survey 2018. This survey quizzed more than 1,000 UK retail investors on their investment practices, outlooks and appetites. The results were very telling: investors want to back forward-thinking young businesses, they just have no idea how to do it.

In fact, on average, investors say they would move 12% of their investable portfolio to early-stage equities – if only they had more complete information and better access to investment opportunities.

Betting on startups

Another worrying statistic revealed that half of UK investors (48%) are failing to achieve their financial goals. The fact that this number has increased since 2016 (46%) suggests that the current low-yield economic environment in the UK is having serious effects on the The Big Investor Survey

nation’s ability to reach its financial goals. Millennial investors seem worst affected, with 53% falling short of their ambitions.

Against the backdrop of dwindling returns, 35% of investors have noticed their appetite for risk increase over the last 12 months. Further, seven in ten (68%) investors say they would take on riskier investments – such as investing in early-stage businesses – if it gave them a stab at meatier returns. This number increases to nine in ten (88%) among struggling Millennial investors.

Meanwhile, a staggering 67% of investors expect returns from early-stage equities to increase over the next 12 months, with 65% considering a diversified portfolio of startups helpful in reaching their financial goals.

There’s never been a better time to be a startup

This latest investor data walks hand in hand with another piece of research we carried out last month. Early-Stage Equities: A Long-Term Study is a report compiled in partnership with independent research firm Beauhurst, which looked at a cohort of 578 companies that raised seed funding in 2011 and tracked their journey all the way to 2017.

In 2011 the cohort of 578 companies was valued at £1,571,764,770, with an average valuation of £3m. (The individual valuations were actually very wide ranging, the lowest being £18,000 and the highest, £138m.)

By 2017, the portfolio value had risen to £10,035,471,734.

The combined valuations of these startups had risen by 30%. That’s blisteringly fast growth for any asset class. What’s even more impressive is that these startups have sustained this level of value appreciation for seven years running.

For comparison, companies listed on the London Stock Exchange grew at a compound annual growth rate of just 5% between 2011 and 2016.

No wonder investors are looking to riskier investments for their returns."

Goncalo de Vasconcelos is the Co-Founder & CEO at SyndicateRoom - a leading equity investment platform that helps companies raising finance from idea stage all the way up to IPO in the London Stock Exchange.

Subscribe to our newsletter

If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.

Our Latest Features

Social media is used as a platform for drugs, Volteface study reveals

A study recently carried out by Volteface, has been revealed that social media platforms are frequently being used in order to advertise illicit drugs.

5 crucial considerations for your first business setup in the city

When it comes to setting up a startup there are certain things to consider before you set up your business in the city.

Studytracks app puts the curriculum to music

The edtech startup that's helping students learn by putting the core syllabus to music

Stairway builds STEM learning experience that counts

The startup that's creating a learning experience to inspire the next generation of STEM learners, starting with Maths.

The key personalities and soft skills you need on your initial start-up team

Not having the right team is a common reason why startups fail. Here are some of the key personalities and soft skills you'll need in your team.

The 6 Steps to Follow to Create a Killer Crowdfunding Video

Mattr Media share their 6 key steps they recommend to every brand who wants to create a killer crowdfunding video and a successful raise.

Why Employee Training Is Important For Smbs

A look at some of the reasons why employee training is so essential for SMBs...

Event at Startup Week Dublin to explore startup collaboration between NI and Ireland

With the impact of BREXIT still very much an uncertainty, our evening event at Startup Week Dublin will explore startup collaboration and opportunities between NI and Ireland.

How To Make Your Start-Up Stand Out

There are some ways that you can make your start-up stand out, including...

Startups shaping future of the smart built environment wanted for RElab programme

Tech startups focused on smart buildings and cities, smart grid, construction tech, predictive maintenance, and other tech solutions - take note!

Published on: 23rd March 2018

If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.

Event at Startup Week Dublin to explore startup collaboration between NI and Ireland 11th Oct 2019 With the impact of BREXIT still very much an uncertainty, our evening event at Startup Week Dublin will explore startup collaboration and opportunities between NI and Ireland.
Startups shaping future of the smart built environment wanted for RElab programme 8th Oct 2019 Tech startups focused on smart buildings and cities, smart grid, construction tech, predictive maintenance, and other tech solutions - take note!
Tech startups in telecom infrastructure sought for BT run competition 3rd Oct 2019 BT and the Telecom Infra Project (TIP) have launched the third annual competition for startups in telecom infrastructure
Innovative Tech Startups sought for the ATI Boeing Accelerator 3rd Oct 2019 Tech startups building solutions relevant to the UK aerospace industry - take note! Innovative Tech Startups are sought for the ATI Boeing Accelerator.