Mayfair based investment firm IW Capital has found that over 12 million (24 percent) investors would now refrain from pursuing an investment decision because of their personal or ethical concerns surrounding the nature of the product or service.
According to a survey carried out by the firm, almost a third of those who responded now believe the ethical, social or environmental impact of the company they are investing into is just as important as the financial return.
Half (50 percent) of investors and consumers want to invest in energy technology in 2018, more than any other sector. They are also looking at Medtech and Fintech.
A fifth more 18-24 years olds olds are looking to invest in SMEs to deliver social change in 2018. Some 47 percent of 18-24 year olds would invest in fintech in 2018, compared to 39 percent of 35-54 year olds and 34 percent of over 55s.
In terms of geography, investors in London are twice as likely (29 percent) as the regions (12 percent) to prefer investing in SMEs, rather than stocks and shares, as an actively conscious investment choice.
A third of London based investors and consumers would now hold back on investment decisions because of their own moral or ethical concerns about the company, a 50 percent increase on the number of people in the regions who would make the same decision.
Some 65 percent of investors in London are looking to invest more in environmental investments in 2018.
The research also found that 54 percent of investors do not know what knowledge-intensive, in an entreprise investment scheme (EIS) context, means.
Investors using EIS as a tax-efficient wrapper saw a doubling of the investment limit in the Budget from £1 million to £2 million, providing investors put money into “knowledge-intensive” companies.
One in five people in the UK with between £75,000 and £100,000 in investable assets are now considering knowledge-intensive companies as an investment option due to this change.
Luke Davis, chief executive of IW Capital, said: "The UK investment population now navigates a landscape of opportunities and social factors that enable a far greater sense of responsibility than that of a decade ago. An increase in the level of education and awareness available, not to mention opportunities that were traditionally reserved for larger institutions, has meant that our investment decisions no longer sit in isolation from our personal lives. Instead, these decisions now directly influence the society we live in."
IW Capital is a London-based investment firm that facilitates equity and debt investment into the UK’s high-growth SMEs.