Discussing equity investment trends
In May 2024, Barclays Eagle Labs, in partnership with Beauhurst, published Unlocking Investment, a report examining equity investment trends among the UK's high-growth companies. Unlocking Investment (May 2024) is the eleventh thought leadership report from Barclays Eagle Labs, funded by the UK Government through the Digital Growth Grant (DGG).
28 March 2025
Date of webinar: 4 February, 2025
Panel: Anthony Baker (CEO and Co-founder of SatVu), Hannah Leach (Houghton Street Ventures) and Henry Whorwood (Beauhurst).
To discuss the findings, a webinar was hosted with an investor and founder who have first-hand experience of the funding landscape. Anthony Baker, CEO and Co-founder of SatVu, shared his perspective on securing investment for a deep-tech business, while Hannah Leach from Houghton Street Ventures provided an investor’s view on the market. Henry Whorwood from Beauhurst also outlined key trends from the report.
For a more detailed look at the data and insights shaping investment in the UK’s high-growth ecosystem, read the full report here.
Unlocking Investment
Raising investment has always proved difficult, particularly in the current macroeconomic climate. Yet, despite these challenges, opportunities remain—particularly for founders who understand what today’s investors are really looking for.
Early-stage capital is still available
At the earliest stages, funding continues to flow. Established funds and newer, emerging managers are still making first investments, particularly into companies with strong potential.
Founders are expected to demonstrate a clear rationale for their business, a well-defined route to market, and evidence of early traction or demand. As Hannah Leach, Partner at Antler and Houghton Street Venture, notes: “There’s still plenty of capital at early stages, but founders need to show strong business fundamentals and clear validation of demand.”
This shift reflects wider pressures on investors themselves. Fund managers are equally challenged by their Limited Partners (LP), to ensure capital is being deployed into businesses with clear growth potential. As such, it is more important than ever for founders to demonstrate the growth prospects of their ventures with strong evidence and transparency.
De-risking early is now essential
Investors are increasingly prioritising risk reduction when making decisions, and the responsibility for this starts with founders. A clear path to reducing technological, regulatory, and market risks significantly increases a business’s appeal to potential investors.
This process goes beyond product development — it also means providing clear evidence of market demand, customer validation, and a realistic assessment of the competitive landscape. When these questions are addressed early, investment conversations are more productive and focused on growth rather than risk mitigation. Anthony Baker, CEO and Co-founder of SatVu, highlights the importance of this approach: “De-risking the technology and de-risking the market pull is important.”
Understanding investor motivations is key
Raising investment is not simply about securing capital — it is also about aligning with the right investors. Understanding who investors are, how they operate, and what drives their decision-making can make a significant difference to both the fundraising process and the ongoing investor relationship.
This is especially true when it comes to understanding the LPs behind venture funds. LPs with specific sector expertise or industry connections can often bring added value beyond financial capital. For founders, taking the time to research and understand these connections can uncover valuable opportunities. As Baker notes: “It helps to know who the LPs are — they might come from a sector you’re targeting.”
Founders are also advised to engage with a wide range of potential investors, not simply to increase the chances of securing funding but to better understand how different investors think. These conversations are an opportunity to shape the narrative, gather feedback, and refine the pitch. Baker adds: “Talk to everyone who has money and understand why they want to invest — it’s your chance to tell your story.”
Venture capital is not the only option
While venture capital remains an important funding route, it is not suitable for every business. The VC model is built around high-growth potential and clear exit strategies, which aligns well with some business models but creates unnecessary pressure for others.
Founders should carefully assess whether their growth plans match these expectations or whether alternative funding routes — such as grants, loans, or revenue-based financing — might be more appropriate. Grants are more commonly pursued by early-stage businesses working on innovative projects, while loans tend to suit companies with a steady cash flow and a clear plan for repayment.
Sector focus is evolving — CleanTech and AI attract attention
Some sectors are attracting greater investor interest than others. CleanTech, in particular, has overtaken historically popular sectors such as FinTech in terms of total investment. Environmental and regulatory pressures, combined with rising demand for sustainable solutions, have made the sector a focal point for many investors.
Artificial Intelligence (AI) also remains a priority, though investor focus has shifted. Simply incorporating AI into a product is no longer enough — investors want to see how AI directly enhances business performance or delivers a competitive advantage. Leach explains: “Founders need to be clear about how they are using AI — how is it accelerating and enabling the business?”
Strong fundamentals remain critical
Despite shifting market conditions, the core attributes that make businesses investable remain unchanged. Investors continue to prioritise strong teams, clear evidence of market demand, and credible plans for sustainable growth.
Founders who actively seek feedback, build relationships with investors, and demonstrate the ability to adapt are far better placed to secure the investment they need. “Build a strong network, understand your investors, and always plan for contingencies,” Baker concludes.
Article
Unlocking Investment – Insights into high-growth companies
We’ve carried out a review of investment trends into high-growth companies within the UK, considering equity investment and its regional distribution, prominent investors and support for diverse founders.
Event replay: Unlocking Investment – Insights into high-growth companies
A replay of the live discussion on unlocking investment with expert panellists, moderated by Henry Whorwood, Head of Research at Beauhurst.
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