The investment trends of 2022
2021 saw a number of headlines in the world of investment, with major strides being made in markets such as cryptocurrency, mixed with social media-driven investment in companies such as GameStop, 2021 was an eventful year for investing. However, as we enter the new year, with markets recovering and showing an increased level of optimism due to positive news on the Omicron variant, the question is, what are the investment trends going to be in 2022?
ESG investing saw substantial growth in 2021 and this seems to be ready to continue in 2022. The way investors make their decisions has changed permanently over the past few years and has no doubt been accelerated by the pandemic. Global ESG assets are on track to exceed $53 trillion by 2025, representing more than a third of the projected total assets under management, with Europe accounting for half of the current ESG assets. Research from IW Capital supports this trend with it showing that 45% of investors are looking to back green or sustainable firms in 2022 and 42% of investors are looking to back firms that benefit their community.
This shows a clear sign of the increased desire to invest in something that investors will hold a personal connection with, being given the chance to visit their investment into their local community and feel valued when they attend. One prime example of this is IW Capital CEO Luke Davis, who as a resident of Hove, has led a multi-million pound investment and renovation project on the seafront, creating a community hub and world-class entertainment venue known as Rockwater Hove (https://rockwater.uk). Part of this raise was a round open solely to residents which raised over £1 million.
It was a pivotal year for the Enterprise Investment Scheme also, with it being predicted to show equally impressive gains going into 2022. Since its inception in 1993, the Enterprise Investment Scheme has raised over £24 billion in funds for almost 33,000 companies. This trend continued into 2020 with a total of £1.9 billion of investment being raised by 4,215 companies. With over 6 million SMEs in the UK, making up 99.9% of private sector businesses, EIS is an essential tool to accelerate the growth of the country’s SME landscape. Providing pivotal support to the backbone of the economy, if the EIS scheme were given greater muscle to assist startups and scale-ups to traverse the challenges posed by the post-Covid economic arena, it could provide a boost for the UK economy as a whole.
At IW Capital we are always searching for, and looking to invest in, small businesses in their growth journey to provide them with the opportunity to thrive and succeed. It’s great to see the predicted investment trends for 2022 in supporting small businesses, which paints an optimistic picture for the coming months.
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.