Investors grow in confidence as IPOs and Deals soar

Confidence and optimism is as important in business as in any other walk of life, perhaps best illustrated by the desire firms show to list on the stock market or make a key acquisition. During the majority of 2020 this market was, at best, subdued, as uncertainty around lockdown and the Coronavirus pandemic impacted the confidence of investors and business leaders alike. 2021, however, has been a different story entirely. 

This year the trend is reversing with a large number of deals and listings. This includes Virgin Media and O2’s £31bn mega merger, and the deflated buyout of Topshop by ASOS at £330m, as well as myriad IPO opportunities. Initial Public Offerings especially provide a barometer for investor sentiment from the institutional level all the way down to retail investing. So to see a large number of them in the pipeline indicates strong investor confidence in the future.

This has undoubtedly translated into a desire to invest into smaller companies as well as business giants. In the past few months alone IW Capital have lead investment rounds for LAT Water, Oliver Jar Digital and Flarin with tremendous support from investors to back these growing companies. 

This support is backed by our latest research which shows that over 16% of investors in the UK are specifically looking to back startups and small firms in 2021. For firms such as LAT Water which sustainability at their core, this number rises to over 45% as investors look to back the future of technology. While 34% are looking to make investments in Biotech, Medtech and Pharma companies such as Flarin. 

This year, there is, if anything, more demand from investors for this kind of opportunity and more demand than ever from ambitious entrepreneurs. So if you are an investor looking to support an ambitious ecosystem of entrepreneurs in the UK, or if you are one of those business owners looking to grow, 2021 may be the perfect time. 

To find out more about IW Capital, or for more information on investment and non-executive opportunities, please speak to a member of the IW Capital team today on 020 7015 2250, or email info@iwcapital.co.uk