Continuing their series of Q&A’s with UK-based business angels investing in SMEs, the Sunday Times’ latest edition included an interview with CEO and Founder of IW Capital, Luke Davis.
After discussing Luke’s involvement with the foundation of IW Capital and personal investments within technology start-ups such as WeSwap and Borrow My Doggy, the focus shifted to the advice for both investors and entrepreneurs at the fast-paced start-up and SME level.
Key messages that were evident from the interview was the necessity for self-belief, determination and the need for investors to trust one’s gut. It is was noted that common mistakes within start-ups often occurred when founders, especially those with a background in large institutions, overestimated their business strategy. There is a tendency to “build a cast of thousands when you don’t need it”, Luke said.
SMEs make up 98% of private sector businesses in the UK. Accounting for an overall value of £1.9 trillion to the UK economy, it is clear that the SME sector is an exceptionally important sector to support and invest into. Therefore, it is absolutely imperative to have the correct strategy in place for developing a start-up into a lucrative business.
Demonstrating the success enjoyed by WeSwap in disrupting established competitors such as Travelex shows a vote of confidence that innovation and confidence are of paramount importance to succeeding in business. It is critical that this message continues to be driven home, certainly with latest estimations placing the convergence of digital and creative industries – also known as the ‘Flat White Industry’ – to be the largest sector in the UK economy.
The interview concluded with some final remarks that emphasised the difficulties that may face SMEs, with a particular focus on regulatory technology, during the forthcoming Brexit transition. Yet again, the innovative spirit of entrepreneurs was heralded as vitally important for SME growth. With continued expertise offered by Luke and IW Capital, the interview highlighted the forward-thinking approach of the team at IW Capital that shows that the company is at the forefront of a sector that is evolving dynamically.
You can read the full interview here.