Small Businesses in South West Benefit from Increase in Private Equity Investments

Tuesday 1st March 2022

According to British Business Bank’s Small Business Finance Markets 2021/22 some £360m of private equity investments were made in small businesses in the South West during the first three quarters of 2021 – a 145% increase on the same period of the previous year and well in excess of the £185m invested during the whole of 2020. This extends the recent improving investment trend in the South West and certainly augers well for the future of the region. For more information on this subject please read the news bulletin below which was issued by Insider Media today.

Roger Mundy, Managing Director, Beardsley Theobalds, 1st March 2022

 

Small SW Businesses Buoyed by Surge in Private Equity

Small businesses across the South West benefitted from a surge in equity investments last year, according to a new report.

The British Business Bank's Small Business Finance Markets 2021/22 reveals that £360m was invested over the first three quarters of 2021: representing a 145 per cent increase on the same period last year, already surpassing the £185m seen across all of 2020.

The number of deals in the South West also increased by 52 per cent, while it attracted 5 per cent of all equity investment deals in the UK during Q1 to Q3 2021.

The report noted that increased equity investment in the South West mirrors a broader national picture. A total of £14bn was invested in smaller business across the country over the first three quarters of 2021: a 130 per cent increase on the £6.1bn invested over the first three quarters of 2020.

Elsewhere, the data showed that the number of local venture capital investors in the South West has been gradually increasing over recent years, while the number of unique investors involved in venture capital doubled between 2019 and 2021 to 31 identified.

Steve Conibear, UK network director of South and East of England at the British Business Bank, added: "As smaller businesses in the South West look to recovery and growth following an incredibly challenging economic period, external finance will continue to play a critical role."Regional gaps in growth finance are undoubtedly holding back our ambitious entrepreneurs and economic opportunity. Our programmes will continue to address this and will be expanded further with a new dedicated £200m fund for the South West."