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The Funding Gap: how Swoop Funding has been supporting startups and SMEs during the pandemic

Tom ButterworthThe last few months have been challenging for businesses as they have been battling to survive during the coronavirus pandemic. Not only have businesses had to pivot to create new revenue streams, they’ve also had the worry of being able to secure funding during a time when investors have been acting understandably more cautiously. We recently had a chat with Tom Butterworth, Equity Account Manager at Swoop Funding to find out how they’ve been helping businesses secure funding during the pandemic.

Swoop Funding helps businesses to access funding across equity, grants and loans as well as cutting their everyday costs. Explaining in more detail what they do, Tom says:

“We are a matching platform and we help startups and SMEs get access to funding across equity, debt and grants. We use our tech to match startups to their best funding solutions based on what stage they’re at in their lifecycle, what sector they’re in, and what type of funding they’re looking for.”

As an Equity Account Manager, Tom’s job is to match startups and SMES who are looking to raise capital with investors. He explains:

“We look to get them in front of investors so they can pitch to investors themselves. Our network is mainly made up of early stage VCs and Angel networks. There’s a big range of people that we can help. Ideally, we just need to see a pitch deck so that we can review it, and then we can assess what type of matches that we’ll have for them in our network.”

The pandemic’s impact has been felt across the angel and wider investment community. Sharing what he’s observed, Tom comments:

“In terms of equity funding, we saw a bit of a reduction in appetite from investors, especially earlier on in the year in March and April. A lot of investors concentrated on their portfolio companies and weren’t looking to see new deal flow. That was slightly tricky for a little while but then recently everything started to pick up again and investors are very keen to see new deals. On the other side of the business, on the debt side, we have had a huge increase in business and we’re helping a lot of startups and SMEs get access to the government loans, CBILs in particular. That’s been really, really busy for Swoop.”

“We are a matching platform and we help startups and SMEs get access to funding across equity, debt and grants.”

During the past few months Swoop has been focusing on supporting startups, helping them to get investor ready while investment opportunities haven’t been as forthcoming.

“There’s been a reduction in potential investment for our clients so we offer more help to try and get them more investor ready. We might give them more help on a pitch deck to make the proposition look more appealing to investors. Obviously, investors are going to want to do a bit more research because it’s a bit of an uncertain time so they want to take less risk.”

Swoop, like many businesses, has switched the majority of their activities online to continue being able to operate while social distancing stays in place. They haven’t found the transition a difficult one and feel it’s worked well for them so far in terms of being able to arrange meetings and calls as necessary. As the restrictions are starting to ease and the country is getting back to some degree of normality, Tom has noticed a few trends:

“We see a lot of e-commerce platforms that have started over the last few months, obviously, because people can’t access the high street and a lot of people are purchasing online. Also the tech sector is still booming really. We see a lot of software as service deals and we’re seeing more med-tech and health-tech deals, which are really exciting and can have positive impacts against things caused by COVID.”

Looking forward to the last few months of 2020, Swoop’s main goal is to help their clients get access to investment and investment funding, and getting them in front of as many investors as possible. In 2021 Swoop wants to continue improving their services to further help their clients and they are looking to expand their investor network, utilising our DealShare platform to get news of their deals a wider reach.

Find out more about Swoop Funding at https://swoopfunding.com.

UKBAA

By UKBAA21 Sep 2020