Equity investment on the rise in Yorkshire and the Humber
The number of equity investments in companies in Yorkshire and the Humber region increased by 10% in 2020, reveals the Small Business Equity Tracker, published by the Sheffield-headquartered British Business Bank today.
During a record year where £8.8bn was put into 2,044 small businesses nationally, the total value of equity investments in Yorkshire and the Humber reached £146m across 68 deals, a 145% increase from £60m in 2019.
According to the new tracker, 10% of equity deals supported by British Business Bank last year were made in Yorkshire and the Humber, a tenfold increase from 2015.
The Small Business Equity Tracker, which is compiled annually and is in its seventh year, also revealed that regional imbalances were moving in the right direction.
In the overall equity market, the proportion of deals going to companies in London has reduced from 50% in 2015 to 47% in 2020.
The volume of equity deals from British Business Bank going to companies in London reduced even further from 63% in 2015 to 42% in 2020.
Despite positive activity in Yorkshire and the Humber, the area remains under-invested compared to the overall equity market, with just three per cent of all deals (two per cent by investment) with small businesses across the region in 2020.
This is lower than the region’s seven per cent share of the UK’s high growth businesses population.
Dr Sophie Dale-Black, UK network director, North of England, at British Business Bank, said: “Yorkshire and the Humber remains a hotbed for innovation, with many strengths such as advanced manufacturing, tech and life sciences, making it well placed for equity investment.
“While the latest figures are moving in the right direction and do address the regional imbalances in access to finance, more needs to be done to support ambitious businesses in our area.
“Given the opportunity available, we would encourage all equity funders to explore Yorkshire and the Humber when it comes to future investments.
“This will not only support growth for local smaller businesses, but it will act as the catalyst to further fuel the levelling up agenda.”
