Financing the businesses of the future with private capital
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Financing the businesses of the future with private capital
How Connected Places Catapult helps high-potential businesses attract investment.
There are 5.7 million SMEs in the UK. Many are developing technologies that could transform how we move, build and connect our cities. But getting from a promising idea to a fundable business is hard, and for SMEs working in transport, construction and the built environment, it is harder still.
Connected Places Catapult addresses the investment gap with all that it takes to get to the pitch room: building commercial evidence through trials, strengthening investor readiness, and making the right connections at the right time.
Connected Places Catapult supports businesses to secure investment
From early-stage innovation grants, through feasibility and development support, to funded commercial trials and market-ready programmes.
● Since its foundation, SMEs supported by the Catapult have raised over £698m in private investment.
● Businesses raised an average of £1.62m per deal following Catapult engagement, up from £1.12m before they were supported by the Catapult.
● Businesses that participated in a Catapult accelerator saw a 35% uplift in investment deal value.
Challenges
The most reported challenge for SMEs in Innovate UK’s State of Innovation 2025 report is a lack of bank equity and finance, cited by 74% of businesses surveyed.
For innovative SMEs in transport, construction and the built environment, this challenge is shaped by several interconnected barriers:
01
Route to market
Thin sector margins (1-3%) leave little capacity for trials. Complex procurement makes early contracts hard to win. Hardware requires large upfront costs before it can be deployed.
02
Finding the right investors
Most angel investors are sector agnostic, with limited expertise in transport, construction or built environment innovation.
03
Investment readiness
Pitch decks are often technology-led and light on commercial returns. Detailed financial forecasts and due diligence documentation are frequently under developed.
Find out more about how we're unlocking investment for innovative SMEs.
Financing the businesses of the future with private capital
File type: pdf
File size: 23.58Mb
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