£16m of venture capital investment boosts region’s businesses in first half

Khush Purewal, partner and head of deals for KPMG in the Midlands

Fast growing businesses in the West Midlands raised £16m of venture capital investments in the first half year of 2022 across 16 transactions, according to KPMG’s Venture Pulse survey.

However, the value and volume of deals fell over the year from a bumper year end in 2021 when 10 transactions raised £31m in just the last quarter.

Transactions in the first six months of 2022 included the £3.2m raised by Birmingham-based Modo Energy, the developer of an analytics platform that helps clients access energy market data.

This includes asset performance benchmarking, revenue leaderboards and tools to analyse ancillary services markets, so owners and operators of grid-scale energy storage and flexible power generation get energy market data quickly to support their operations.

Khush Purewal, partner and head of deals for KPMG in the West Midlands, said: “Amidst such considerable uncertainty it has been encouraging that ambitious, fast-growing businesses in the West Midlands continue to attract venture capital investment. While the value of transactions has fallen, the volume of activity we’ve seen in the market is steady, which is a testament to the resilience of the pool of start-ups we have emerging in the region.

“Our deal advisory teams continue to see appetite from investors to deploy capital. But entrepreneurs taking the plunge to raise finance will need to articulate how their proposition will navigate the challenging economic environment and respond to market disruption from rapid technological innovation.”