- 7th April 2020
- Posted by: Edward Kirkby
- Category: Uncategorised
A campaign ‘Save Our Startups’ launched on Sunday by Crowdcube, a UK-based crowdfunding platform, is appealing to the British government to offer support for the 30,000 startups that will not benefit from the current measures introduced to help businesses over the coming months.
Startups contribute a vast amount to the British economy by investing large amounts of money in people and technology, to bring new and innovative products to the market. Due to this heavy investment and their levels of spending, many start-ups will not yet be generating a profit.
This is problematic, especially when we look at the types of support introduced so far – a loss-making startup is unlikely to qualify for existing measures put in place to support SMEs, such as the Coronavirus Business Interruption Loan Scheme.
In the last two weeks, we have seen the French and German governments introduce measures to protect startup and high-growth businesses – demonstrating that they recognise the crucial contribution these businesses make to the economy, and the contribution they make to society as a whole.
In an open letter to Boris Johnson, the signatories have requested that Britain follow suit and take the following action:
- The Government needs to provide an equity-based liquidity package suitable to save startups at risk
- The Government must fast track payments to startups from public funded schemes – in particular R&D tax credits and Innovate UK funding grants
- The Government must change EIS, SEIS and VCTs to stimulate private equity investment into startup and high growth businesses
Without the above action being taken by the Government, it is estimated that thousands of startups will fold in the coming months.
At Accounts Lab, we understand the difficulties that startups will face in the current climate, and fully support the Save Our Startups campaign. We would urge and advise all of our clients and contacts to pledge their support to ensure the survival of our country’s startups.
To protect Britain’s innovation, enterprise and entrepreneurship, please sign the petition.
Signatories & Founders
Darren Westlake – Co-founder & CEO, Crowdcube
Luke Lang – Co-founder, Crowdcube
Jeff Lynn – Co-founder & Executive Chairman, Seedrs
Carlos Silva – Co-founder, Seedrs
Philip Salter – Founder, The Entrepreneur’s Network
Jonathan Sibilia – Partner, Draper Esprit
Dom Hallas – Executive Director, The Coalition for a Digital Economy (Coadec)
John Spindler – Co-founder & CEO, Capital Enterprise
Mark Brownridge – Director General, EIS Association
Russ Shaw – Founder, Tech London Advocates
Jenny Tooth OBE – CEO, UKBAA
A full list of the signatories can be found here.
Please get in touch if you would like any further advice on the Coronavirus and government support.