Across the UK, founders are feeling the squeeze. Investors are cautious, politics is volatile and the days of easy capital are firmly behind us. Yet at The EpiCentre in Haverhill, a different story is unfolding, defined not by paralysis but by creativity and persistence.
During a recent podcast recording at the centre, founders and experts reflected on what many describe as the toughest funding environment in a decade. CS Pharmaceutical’s, Darren Mercer, observed that the easiest move for investors right now is to do nothing. With uncertainty swirling in the US and investment appetite cooling in China, many global funds are focusing on protecting existing portfolios instead of backing new, unproven teams.
Rather than waiting for conditions to improve, The EpiCentre startups are widening their field of view. Finance and Support Expert, Steven Goddard of Innovate UK highlighted how Enterprise Investment Scheme incentives have been a lifeline, helping raise more than £7 million for their startups to date, some via a broker process. Others are engaging with Asian investors who are keen to gain exposure to UK and European innovation, especially where short term opportunities in their own markets feel constrained. Delegations from Switzerland, the UAE and other emerging hotspots are also showing renewed interest in UK science and technology.
Not every business, however, fits the familiar mould of a venture backed scale up, and that realisation is reshaping strategy. As resident founder James Dunce, CEO of Kinva Bio puts it, a startup like theirs is straightforward: they make something and they sell something, and traditional venture capital is rarely excited by that model. With many VC firms concentrating on high growth, high risk bets, early stage teams questioning altogether whether venture funding is the right route at all! Business loans, angel investment and family offices, which demand solid fundamentals rather than glossy projections, are becoming more attractive options.
Across all of these paths, one theme keeps resurfacing: flexibility.
Business models, messaging and investor materials are being rewritten repeatedly, shaped by market shifts and direct feedback from investors. Entrepreneur Mercer reflected that they have evolved every part of the business over the past four years. The logic is simple. Conditions change, investors change and what sounded exciting last year may barely register this year.
Another critical tension for any UK founder is courting overseas capital. IP protection still matters, and serious investors expect founders to be on top of it. Yet Steven Goddard of Innovate UK, urged entrepreneurs not to let fear of losing control stop them from building relationships and exploring global opportunities. And, as Business Support Director for Oxford Innovation Space, Neil Griffin puts it, adopting a mindset which is funding-ready with a strong business plan, a strong awareness of their numbers is of paramount importance (even if a managed accountant isn’t used) because lack of clarity often slows progress more than it reduces risk. This is particularly true when investors are weighing the quality of the team and the commercial pathway as much as the underlying technology.
For founders in tech, gaming, biotech, medtech and scientific research, the message is that the rules have changed. Funding is harder to access, but it has not disappeared; it has moved and it now asks more of you. At The EpiCentre, Haverhill, the founders who are willing to adapt, look outward, refine their story and challenge old assumptions are still finding ways to move forward with a little help from the experts.
