Retail revolution attracts new age of investors in 2021

31st March 2021

2021 was a boom year for online retail with 85,000 new businesses started during the pandemic. Consequently, it seems investor appetite has increased, with over a third of young investors now looking to back online retail.

In 2021, we are seeing the investor appetite to back online retail supersede property, a sector that has been one of the most attractive investment options since the 80’s and a common trend found in private equity portfolios across the country. This shift in sentiment, especially among younger investors, highlights the impact personal experience now has on the appetite to back a sector. The vast number of success stories around new businesses starting up online has garnered interest from those who have witnessed first-hand the growth obtainable within the e-commerce sector and now see it as a strong investment opportunity.

In our latest Investment Index research, we found that 29% of UK investors will back online retail businesses and technology and 33% of investors in the UK that are aged between 18-24 are backing online retail. It is really promising to see that younger investors are looking to capitalise on the growth opportunities entwined with this boom in online retail. With online marketplaces providing a new platform of success to the solopreneur, we have seen a number of young business-minded men and women spark successful businesses from the ashes of Covid, and this has furthermore gained a backing from their generational peers.

21% of UK investors are now backing start-ups and newly formed businesses which shows that there is huge potential for growth in the SME arena. With a 13% increase in new businesses starting up during 2020 compared to 2019, 2021 is set to create some exciting investment opportunities throughout the country and some that are sure to boost the wider British economy.

Investor sentiment has been transformed throughout the pandemic and we are now seeing just how much of an impact the pandemic has had on their appetite to invest and where we are putting our money. For those with investment power, there is now a more personal responsibility to back the future facing businesses that are sure to benefit both our society and our economy. Personal experience is now becoming a key factor in how we as investors are looking to spend our money and a major influence on our portfolios.

We at IW have ourselves been investing heavily into the online retail sector with Ubamarket, a future facing shopping app that is revolutionising the hospitality industry and one that will play a key role in the sector’s re-emergence as businesses look to re-open post-lockdown. This is a prime example of a business that has diversified its model to be able to profit through the pandemic, and this is now a prerequisite that investors are looking for when thinking of investing.

To find out how IW Capital could maximise your investment opportunities, please contact the team today on 020 7015 2250, or email info@iwcapital.co.uk.