Equity finance for small businesses bounces back

The UK equity finance market for smaller businesses has bounced back to record highs in 2017 following a decline the year before.

British Business Bank’s Small Business Equity Tracker found total investment value soared in 2017 by 89% to £5.9bn, with the number of equity deals increasing by six per cent.

This represents a 50% increase from the previous peak in 2015, signalling signs of investor confidence.

Deal sizes have increased across the whole market, with especially pronounced increases amongst the largest deals.

Beauhurst classifies deals into three distinct stages; seed, venture and growth, reflecting the company’s underlying position in terms of product development, commercialisation, sales and profitability.
Keith Morgan, CEO, British Business Bank, said: “After a weaker 2016 the UK’s SME equity finance market saw a record year of growth in 2017 with investment amounts soaring to £5.9bn.

“This is a clear sign of investor confidence in British smaller businesses and their potential for growth.

“The British Business Bank continues to work to ensure businesses across the UK can access the equity finance they need to fulfil their growth potential.”