Beauhurst data shows that equity investment amounts in UK SMEs grew to £3.5bn in 2015, an increase of 58% since 2011.
The data, illustrated in the latest annual Small Business Equity Investment Tracker, produced by the British Business Bank in association with Beauhurst, highlights a fourth consecutive year of growth in equity investment for high-growth businesses, with 1,270 equity deals in 2015, 5% more than the previous year.
However, this is offset by worrying developments towards the end of the year. Regional disparity is clear in the UK, with companies in London representing a huge 47% of overall deals done. The report also shows that equity deals are clearly underrepresented in the North and MIdlands.
Indeed, as we pointed out in our recent edition of The Deal, although the market appears strong, in recent times, deal numbers have fallen alarmingly, with the first quarter of 2016 showing a continuation of these negative trends.
Keith Morgan, CEO of British Business Bank, says that there has been “a step-up in equity finance provision since 2011 but, notably, wide-ranging regional disparities persist. Although there are high-growth businesses throughout the UK, it is a concern that the regions outside London, home to 79% of these businesses, attract only 53% of the equity investment.”
Download the full report here.