Very few, if any tech businesses have been unaffected by Covid-19 over the past few months.
Some have been fortunate enough to see an upsurge in demand and to have been already working in a largely virtual way. Many others however, have had to struggle with reduced demand and the disruption caused by moving out of offices and furloughing staff.
On top of that, cash flow problems may have necessitated cut-backs in essential R&D programmes and the taking on of more debt through accessing government support.
Now, as we slowly start to surface from this crisis, there is a real opportunity for the tech industry to shape this ‘new normal’ or, as some people are saying, ‘kick-start’ the fourth industrial revolution. However, to achieve this, Research and Innovation must not only get back to where it was, but grow significantly in the areas where it can add most value in creating the UK economy of the future.
Prior to Covid-19, total UK spend on R&D had already stagnated, not recovering fully from the 2008 crash.
This was due to a number of ‘push’ and ‘pull’ problems e.g.
- Lack of management time – Not having the time to work ‘on’ the business rather than ‘in’ it.
- lack of a clear commercialisation strategy – increasing risk averseness
- lack of awareness of the funding options available and the time scales involved
- lack of understanding of how to formulate propositions that lenders will buy into – which results in sub-optimal funding decisions being made on an ad-hoc, short-term basis.
Now, tech businesses are faced with even more challenges to overcome and many may be tempted to accept equity offers at well below pre-Covid valuations, as the private equity market looks to snap up businesses at a bargain.
However, one must hope that the government recognises this and develops a comprehensive range of support programmes, covering R&D tax credits, R&D grants and loans that tech businesses can, with the right planning, access when they need to.
MSC R&D has thirty years’ experience in helping tech businesses gain R&D funding – we can provide strategic insight, a knowledge of the R&D funding landscape and practical support in accessing R&D funding.
Why not contact us to discuss your Research and Innovation funding needs?
0114 230 8401
