Startups Rate Personal Chemistry with Investors Above All Else in New Survey to Determine their Hierarchy of Needs

LONDON, March 23, 2017 /PRNewswire/ --

• Research from UK Innovation Hub and Tech City UK reveals what startups really want from their investors - highly rating trust, understanding of the company vision, and access to a large network of further investors

• New board members, free office space and support when hiring, are the least important factors when looking at early-stage investment options

• The UK Innovation Hub is a new startup programme  from Innogy, investing into early-stage energy tech companies across a range of sectors including Big Data, Machine Economy and Urban Solutions.

A new survey has today revealed the true investment needs of the UK's early-stage startups. The research conducted by UK Innovation Hub and Tech City UK showed that the most important factor for companies considering raising external investment was personal chemistry and trust with the investor.

The UK Innovation Hub, a new startup programme from Innogy the Germany-based energy company, is focussed on investing into early-stage startups. Together with Tech City UK, the government-backed initiative to support the growth of the country's digital startups, and community partners Seedcamp and 500 Startups, both early-stage investors, the survey highlights what UK startups really want, creating it's own Hierarchy of Needs. Key findings included:

• Fulfillment: 
  • Access to a wide network of investors is the most important higher level need - three-fifths say this is key. Reflecting the importance of the personal relationship, over three-fifths would also value an investor who provides informal guidance and coaching.
• Psychological:  
  • Personal chemistry emerges as perhaps the critical factor - there is near consensus from founders that the ideal investor will be someone they like and trust, and who is in tune with their product and vision.
• Basic:  
  • The priority hygiene factors relate to the ease of onboarding and reassurance that the investor has a strong track record. A low maintenance relationship is also important for over two-fifths of founders.

Thomas Birr, SVP, Innovation & Business Transformation at Innogy, commented: "With a huge array of different startup programmes and investment options available, we wanted to get to the heart of what really matters to Founders when considering funding. With the majority looking to Angels and VC's for funding, and just over two-fifths looking to accelerator programmes, finding someone they liked or trusted with an understanding of their product and vision, was incredibly important. Access to further funding and a great track record were also key considerations, while the add ons many programmes provide - such as free office space and pitch training - were a low priority."