Deloitte & Touche aimed to raise the financial profile of UK technology companies with the launch of its Technology Fast 50 Programme. The programme aims to find the 50 most rapidly growing technology firms – classed from biotech to IT – in the UK, through a series of regional heats, culminating in a national final in April.
Mike Berners Price, architect of the UK programme and a partner at Deloittes, said that, despite an average growth rate of 25%, technology firms struggle for attention from venture capitalists.
‘Technology firms are doing very well, but they’re operating in a vacuum. There is definitely a funding gap with venture capitalists.
It’s easier for them to invest in companies of over #5m instead of technology companies of less than #0.5m.’
Corporate finance partner at chartered accountant Hurst & Company, Jeremy Cole, added that UK technology companies have unique accounting needs: ‘After low revenues due to research and development costs, technology companies grow very rapidly compared to manufacturing companies, doubling their growth each year. Accountancy firms need to advise help them through this high growth phase.’
The British Venture Capitalist Association was unavailable for comment.
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