Artificial Intelligence and Machine Learning , Region of focus: United Kingdom , region-specific
“Would I be better off spending my money on a place to stay in America for a week?”
Akshaya Asokan (asokan_akshaya) •
November 26, 2024
Revised UK government research funding guidelines and their complex applications are posing challenges for early-stage technology companies, experts told a parliamentary committee inquiry on Tuesday.
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Aimed at encouraging innovation and helping businesses overcome challenges, the tax break allows companies to claim up to 20% of their research and development costs. Businesses can also apply for grants of up to £2m under the Innovate UK programme.
Technology experts testifying before the Communications and Digital Committee said the revised tax relief threshold was hindering growth.
“We definitely had a problem,” said Peadar Coyle, founder of AudioStack. “It has been difficult from a cash flow management perspective given the number of changes to the scheme over the past few years.”
Victor Riparbelli, CEO of AI video generation company Synthesia, acknowledged that the Innovate UK grant is playing an important role in helping businesses stay afloat in the early stages until they secure larger investment. I did.
“The role that the Innovate Fund played was that we were able to get funding when no one else could, and that’s exactly what this grant needs to focus on. They won’t necessarily do that, so we should focus on companies that are starting their operations,” he said.
But Simon Barratt, chief executive of gaming company Cooperative Innovations, said the lengthy grant application process was a challenge for early-stage companies seeking timely funding. said.
“In the early stages, when it’s really difficult, the time you spend on it, you think, ‘Should I spend it on a place to go to the United States for a week to raise money?'” Barratt said.
The difficulty in raising early-stage funding is largely due to the fact that British venture capitalists tend to be more risk-averse than their American counterparts, Lipalberg said.
“If you contrast the UK’s early-stage funding ecosystem with the Silicon Valley ecosystem, there’s a more risk-averse mentality in the UK. In the US, it’s more about how big you can get,” Lipalberg added. Ta.
