North West equity market rebounds with growth in deals and value after multi-year decline
-The number of equity deals rose by 11.5% to 146 in 2024 across the North West, with total investment value rising 46.2% to £654m
Total equity investment into smaller businesses across the North West of England increased by 46.2% to £654m in 2024, despite a nationwide slowdown in activity. The volume of equity deals also increased in 2024, rising by 11.5% to 146 deals. The North West is one of only three regions in the UK to see both deal volume and value increase, according to the British Business Bank’s annual Small Business Equity Tracker, published today.
In2022-24, the British Business Bank had a higher share of deals than the wider market, with 6.2% of equity deals in the UK going to the North West, compared with 7.8% of Bank-sponsored equity deals, highlighting the Bank’s confidence in the region.
Business angels vital for early-stage equity investment
Business angels continue to be a significant source of equity investment for start up and early stage businesses with 70% of angels investing in early-stage businesses.The Small Business Equity Tracker found that two-thirds (64%) of respondents to the Bank’s survey of UK angel investors have matched or increased their investments from 2023 to 2024.
In the North, the British Business Bank is working closely with Lifted Ventures as part of its Female-led Angel Syndication Pilot. So far, Lifted Ventures and the British Business Bank has raised a total of £7.2m worth of investment into 17 deals in the region. This runs alongside the Bank’s commitment to investing in the North through its launch of the Northern Powerhouse Investment Fund II (NPIF II), which provides equity finance to businesses across the region.
The national picture
These findings differ from those across the UK. Full year data shows that investment declined by 2.5% to £10.8bn in 2024 in the UK, while the number of deals fell by 15.1% to 2,048, reflecting a more cautious investment environment and a trend towards fewer, larger deals. Despite the fall in equity investment, 2024 was still the fifth highest year on record in value terms for small business equity investment.
UK investment gap with the US driven by sectors such as life sciences and advanced manufacturing
The UK had a 10% investment gap with the US between 2022-2024 after adjusting for the size of the economy. Looking across sectors the UK is outperforming the US in financial services and clean energy, and is only marginally behind in digital technology. However, there are more acute gaps in life sciences and advanced manufacturing, two of the growth-driving sectors identified for investment as part of the UK’s modern industrial strategy. Between 2022-2024, UK venture capital investment represented 0.68% of GDP, 1.1x less than in the US, though this gap has narrowed from 1.3x in 2019-2021.
London’s share of investment falls as the North West’s rise
London has become less dominant over the last few years as its share of equity investment has dropped to 61% from a 2020 peak of 73%. London was also less resilient in 2024 than the wider UK equity market, seeing a 21% drop in the number of equity deals compared to 2023.
Five of the UK’s 12 Nations and regions saw growth over 2024 with activity in the North West increasing across both the number of deals and total investment value. Proportionally, the British Business Bank was more likely to support deals in seven of the 12 Nations and regions compared to the wider market, including the North West, reflecting the impact of the Bank’s Nations and Regions Investment Funds and Regional Angels Programme.
Vicky Mears, UK Network Director, North of England and the Midlands, at the British Business Bank, said: "It’s fantastic to see both the volume and value of equity deals increasing in the North West in 2024, particularly following multiple years of decline. These figures demonstrate real confidence in the region’s businesses and the strength of its innovation ecosystem.
“The North West continues to attract significant equity investment, supported by a thriving community of entrepreneurs, universities and research institutions. Through initiatives like Northern Powerhouse Investment Fund II and our partnerships with angel syndicates, the British Business Bank is committed to ensuring ambitious businesses across the region can access the finance they need to grow, innovate and create lasting economic impact.”