Keith Hiscock joined Ivan Sedgwick, investment director of LGB & Co, for the seminar 'Small businesses are the engine of every economy — but how should investors think about funding them?' as part of 'The Weekend of Mistakes' at Hay-on-Wye on 22 March 2026. The session was chaired by David Clarke, CEO of Didasko Education Company, the charity behind the Library of Mistakes, and looked at the evolving landscape of small business finance, including its opportunities, risks and funding models.
The way UK companies raise money has transformed dramatically over the past three decades. Where businesses once moved fairly quickly from friends-and-family funding to a public listing on markets like AIM, companies today stay private for much longer – and that shift has reshaped the entire investment landscape.
The numbers tell a clear story: the number of companies listed on AIM has fallen by roughly 50% since its peak. Average IPO valuations on AIM have also climbed sharply, from around £21 million in 1995 to £127 million by 2020, meaning smaller companies are largely being squeezed out of public markets altogether and making it more difficult for smaller businesses to access public markets and for retail investors to gain exposure to earlier-stage growth companies.
Hardman & Co’s CEO Keith Hiscock examines the trends reshaping business funding, the changing role of public markets and the factors influencing how companies access growth capital.
For investors seeking exposure to growing businesses, the market now offers a range of potential routes. Keith explores the opportunities available, the advantages and challenges of different approaches and how the investment landscape continues to evolve.
Not all smaller companies are the same. The discussion considers some of the key factors investors should evaluate when assessing opportunities, including business models, growth strategies, and the risks that can accompany higher-growth investments.
The conversation also highlights the different ways founders and investors often view businesses, and why clear communication can play an important role when companies seek funding.
Watch the full interview to hear Keith’s insights on the changing UK funding landscape, the opportunities available to investors and the trends shaping the future of smaller business finance.
Read more about the the seminar ‘Small businesses are the engine of every economy — but how should investors think about funding them?’
See the ‘The Weekend of Mistakes’ programme.
1:08 – The new funding model
1:45 – Why companies stay private for longer
4:50 – The UK’s £34bn EIS success story
5:40 – Why the UK loses companies to US investors
6:15 – What founders don’t understand about investors
7:34 – Why founders struggle to value their businesses
