West Midlands sees 81pc rise in equity investment
Equity finance investment in small and medium-sized firms in the West Midlands soared by 81 per cent last year to £207 million.
Nationwide there was a record £6.7 billion of equity finance invested into UK SMEs last year – up 72 per cent over the last two years.
New data from the British Business Bank’s Small Business Equity Tracker report, released today founbd that London's dominance as the centre of the Uk equity market is waning.
The report, which provides an in-depth assessment of equity finance markets for growing businesses, found that last year 41 per cent of total equity finance was secured by companies outside the capital, up seven percentage points on 2017.
Birmingham City Council ranked in the top 25 local authority districts in the UK for volume with 14 announced equity deals in 2018, with software companies the biggest beneficiaries followed by professional services firms.
The British Business Bank’s own Midlands Engine Investment Fund helped contribute to 20 per cent of total equity deals in the West Midlands region in the year.
Keith Morgan, chief executive of the British Business Bank, said: “We are committed to maintaining a vibrant and healthy equity finance market in the UK, helping businesses to fulfil their potential while building a successful economy.
“This year’s Small Business Equity Tracker report reveals that the bank is having a notable impact on access to equity through a range of initiatives, including through its Midlands Engine Investment Fund, where in 2018 it contributed 20 per cent of equity deals in the Midlands.
“We are particularly pleased to see a 29 per cent increase in investment outside of London. The British Business Bank continues to work to address regional imbalances in access to investment to ensure smaller businesses across the UK can access the equity finance they need to fulfil their growth potential.”
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