This pace creates both threats and opportunities, particularly in high-growth areas like Fintech, Internet of Things, subscription models, and software, data, security and infrastructure as a service.
Depending on their level of business maturity, the challenge for companies in the space is slightly different. But the principle remains the same: grow or die. To be the next billion-pound technology brand, CEOs need to work out how to scale and grow faster than their rivals - without compromising the DNA of the business.
Ongoing access to finance is a constant issue for high-growth businesses. Those that lack financial firepower often find their growth stunted. Others encounter problems with cash flow during day-to-day operations. At the same time, the funding landscape has changed drastically since the financial crisis of 2008 – and continues to evolve. Understanding how to navigate through an evolving ecosystem of funding options is key; as is learning from the lessons of others in when to raise, what to raise, and for how much.
While past companies were largely based in Silicon Valley, Seattle, London or Tel Aviv, technology companies are now anywhere and everywhere, all at the same time. This is resulting in venture capital increasingly crossing borders to follow and find the break out companies.
When several world-leading tech companies made front-page news for their tax affairs in 2013, there was no doubt – tax matters more than ever to today’s ambitious companies. The UK government are creating a tax system that encourages innovation and entrepreneurship and is attracting investment and talent to the UK. Transparency and optimisation are often seen equal.
Tech companies must build into their products the functionality and capability to comply with a large and diverse set of conflicting international standards. They must give their customers a high degree of confidence that their services and products are secure, protect their privacy and support compliance with other emerging standards.
And, if that isn’t enough, they need to protect their own infrastructure and data as much as - if not more than – any other organisation. Expanding tech companies will also need to maintain perspective in this area: approached correctly, regulation needn’t be a problem. It can create competitive advantage.
With rapid expansion comes the need to rationalise infrastructure fast - particularly after establishing a presence in a new market. If companies do not invest time and resources in making infrastructure more efficient - eliminating redundancies in processes, systems and the operating structure – they will face not only face significant costs later on but it will slow them down.
You'll work with the leading specialist advisory firm supporting growth in the technology sector. In 2015 alone, we completed over 40 technology corporate finance deals: more than any other adviser, and we audit more AIM listed IT businesses than any other firm. So you can keep pace and act wisely by accessing our unrivalled big picture insight gained from our experience of working with more than 5,000 technology companies, ranging from start-ups to market leaders including Atos, HCL Technologies, Yahoo and Microsoft.
Grant Thornton’s technology industry specialists across the UK and around the globe can work with you to scale your business. Helping you to plan for growth; adapt your processes and controls for a changing business model; manage risk; meet regulatory requirements and develop growth strategies.
We focus on dynamic, high-growth companies. More than any other industry, our strategy directly aligns with the technology industry’s critical measures of success - growth.
