‘Raising money is difficult’: British startups finding it harder to access funding

An experienced entrepreneur from Cambridge says there’s little money around ‘for the big, important ideas’. Photograph: eye35/Alamy

British startup founders have warned that access to funding is drying up as potential investors become more risk-averse in light of the escalating cost of living crisis.

Startups are among the businesses struggling with higher costs as soaring energy bills and the highest rate of inflation for 40 years threaten to plunge the UK economy into recession.