Sarah Briddon
Head of UK Digital, Tech & Comms at Citi Commercial Bank

The UK technology landscape is dynamic, globally competitive and exciting: the country can be proud of its achievements in a sector that is crucial for future prosperity. But success does not occur in a vacuum. It requires a rich ecosystem that can nurture companies as they advance from bright ideas to startup, through successive financing rounds to – in some cases – a trade sale, acquisition by a private equity fund, or IPO.

Banks are key to this ecosystem, helping to drive the growth of UK tech companies by providing financial products and services, fostering strategic partnerships, and offering advice and expertise.

Equity funding can be vital for tech companies, especially in their early stages. Banks can leverage their networks to connect startups with investors, including venture capitalists, angel investors, and family offices. Some banks and their private market clients may also offer venture debt, a financing option tailored for high‑growth, venture‑backed companies.

Young tech firms’ needs can change rapidly and they typically prioritise growth over immediate profits, making flexible financing indispensable. Some banks can provide options such as Annual Recurring Revenue financing, which offers capital based on predictable subscription income, or bridging loans, which cover short‑term funding gaps while companies secure larger investments.

Companies also need to consider working capital finance, which helps fund day‑to‑day operational expenses and is often described as the ‘lifeblood’ of companies. Early‑stage tech companies’ unpredictable cash flows may make it difficult to meet upfront costs, ranging from developing their product to marketing. Working capital finance can help enable them to fulfil their short‑term obligations, such as paying suppliers and employees, and ensures they can invest in growth opportunities. While tech companies understandably focus much of their energy on securing funding for innovation and expansion, banks also provide treasury management services that can be essential for scaling or ensuring a successful exit.

Fast‑growing digital companies face a range of operational and financial challenges as they grow. Managing payments, collections, and banking services across multiple markets and currencies can quickly become complex and time‑consuming as firms enter new markets, especially if they work with multiple local banks.

Efficient banking services help streamline operations and ensure effective cash flow management. They can help companies improve their working capital efficiency and therefore enhance many of the financial metrics that are key in a trade or private equity sale. Prospective external investors are also typically focused on issues relating to governance, transparency and accountability (including regulatory and compliance requirements), which are usually managed within treasury.

To build a credible treasury function with sufficient agility to support rapid growth, UK tech companies need a global bank, that understands the tech sector. Working closely with a global bank can help firms to develop long‑term financial strategies that address liquidity management, FX optimisation, and cost reduction through streamlined payment and collection systems. 

Citi Commercial Bank can help simplify global expansion for UK tech companies by offering a single platform to manage their accounts wherever they operate, with integrated FX and risk management solutions, and a wide range of financing options, from lending to investment banking products. Citi can support UK tech firms’ long‑term growth by offering advice on financial management and strategic planning that helps them anticipate challenges and optimise their financial operations.

As a global bank with digital expertise and on‑the‑ground insights about the UK market, Citi acts as a source of knowledge for the broader UK tech ecosystem and is a strong champion for its advancement both in the UK and globally.

Scott Brookman
UK Sales Director (Software) at Oracle NetSuite

In today’s global investment landscape, securing funding and attracting buyers for a growing business has become increasingly challenging. The right technology foundation can demonstrate a fundamental competitive advantage to potential investors. 

A business management system – or Enterprise Resource Planning (ERP), can help ensure that departments are working from one source of information— automate manual processes, and help become AI‑ready.

Here are four ways emerging businesses can leverage technology to prepare for the next step.

To be productive and do more with less
Changing economic circumstances and fluctuating interest rates continue to squeeze profit margins and create operating challenges. For many businesses, increasing efficiency and boosting the KPIs that demonstrate their productivity will be critical to success and valuable in the eyes of investors. Leaders can only manage what they can measure, and success will undoubtedly require management to know their numbers – from performance metrics to supply chain data – which will be the key to finding ways to do more with less. This relies on access to technology that gives visibility of real‑time data that provides a single view of the business.

To maximise the potential of AI
As the potential gains afforded by AI evolve, growing businesses must taper their enthusiasm to adopt or ‘bolt on’ AI at any cost. AI is only as good as the data it is trained on, highlighting the importance of having business information that is integrated and relevant across departments. By embedding AI in their ERP, businesses will be better placed to increase user productivity, reduce costs, harness the power of their own data, and improve overall efficiency. AI should be used to analyse and assist. By combining AI with finance and operational data, web analytics, lead‑generation data, and customer satisfaction metrics, businesses could uncover unique trends to unlock new insights, develop strategies to build their audience, and impress investors.

Know your company’s story and how to tell it
Effectively articulating everything from product roadmap to brand identity and growth objectives is key to investors. It’s not enough to simply have a good story. It is critical that the company’s leadership can tell a compelling narrative and back it up with data. That means having leaders and communicators who are adept at proactively conveying the brand. Company storytellers must be armed with financial performance, KPI information, and details about the target market. They need to tell the company narrative in a way that attracts customers and convinces investors that they are buying into something with growth potential.

Always expect and prepare for change
Staying agile – and being able to respond swiftly to market changes – should always be a top priority. Both long and short‑term business plans should incorporate some element of flexibility, working with finance, inventory, and supply chain data to stress test “what‑if” scenarios. For example, businesses can test scenarios such as the impact of raw material prices doubling or supply chain disruptions causing revenue delays. Then, ask questions such as how cash flow will be affected, what evasive maneuvers can be taken, and how risk can be lowered with preventative measures.

This, too, relies on real‑time, reliable data that provides a single view of the business. A strong technology foundation gives business leaders the visibility they need to respond quickly to a changing market, operate efficiently, and stand out.

Darren Upson
Vice President (Europe) at Tipalti

As businesses look ahead to 2025, finance leaders find themselves facing a crucial challenge: achieving the perfect balance between cost efficiency and sustainable growth.

For many companies, the ultimate goal is a successful exit, whether through an acquisition, sale, or IPO. Yet, achieving this requires more than just profitability. It demands a well‑crafted strategy that integrates streamlined operations, cutting‑edge technology, and a solid growth plan. In an unpredictable economic climate, the path to a profitable exit depends on agility, data‑driven insights, and innovative planning. Here’s how finance teams can strategically time their exit while ensuring long‑term profitability.

The growth vs. cost‑cutting balancing act
In the wake of economic turbulence over recent years, many businesses have shifted from purely defensive cost‑cutting measures to a more nuanced strategy, balancing cost control with investments that fuel growth. A recent report from Tipalti indicates that CFOs are highly focused on building more efficient financial processes while remaining open to market opportunities as they arise.

While cost‑cutting remains essential, finance leaders understand that a purely lean approach can be limiting without a growth framework. For instance, automation offers finance teams a way to streamline processes by eliminating time‑consuming manual tasks.

Driving agility through technology
Automation and digital solutions play an increasingly important role in making organisations both cost‑effective and agile. By integrating automation tools into accounts payable and other back‑office functions, finance leaders are reducing inefficiencies, minimising errors, and redirecting resources toward high‑impact areas.

Cutting‑edge technology such as AI and predictive analytics offers finance teams a competitive edge by enhancing data accuracy and providing actionable insights in real time. For example, AI‑driven systems can flag potential anomalies in financial data that might otherwise go unnoticed. By adopting these tools, finance leaders transform from purely operational roles into strategic partners, helping guide their organisations toward a well‑timed and profitable exit.

Market timing and exit strategy
Deciding when to execute an exit requires both a thorough understanding of market conditions and a stable financial base. In a volatile economy, identifying the right moment to exit can be challenging. However, with lean operations and access to real‑time data, finance teams can more accurately assess market readiness. Equipped with the right tools, companies can track financial metrics, gauge market conditions, and adjust their strategies as needed.

Finance teams must also be vigilant about regulatory changes and economic indicators, which can directly impact valuations and investor interest. 

A recent adjustment in the UK’s capital gains tax underscores this point, prompting many businesses to shift their focus toward long‑term resilience rather than short‑term profit.

Building for sustainable profitability
Finance leaders who prioritise agility empower their teams to adapt quickly to changing market conditions. A lean operational structure enhances flexibility, allowing companies to scale resources as needed without sacrificing financial discipline. This approach not only sustains profitability but also ensures the business remains attractive to investors and potential acquirers.

Exit planning with agility and foresight
Ultimately, a successful exit strategy in 2025 requires finance leaders to combine cost efficiency with a robust growth vision. As the economic landscape evolves, companies positioned to respond swiftly to market changes and equipped with streamlined operations will stand out as strong investment targets.

For companies planning an exit, 2025 is likely to demand more than traditional cost‑cutting tactics. It will call for a sustainable, forward‑looking approach that marries operational efficiency with strategic foresight. By investing in agile processes, fostering talent, and adopting technology, finance leaders can position their organisations to seize market opportunities, ensuring a profitable exit despite the complexities of today’s financial environment.