North West sees “promising” 210 per cent increase in equity investment value

The British Business Bank’s second annual Nations and Regions Tracker, published today, finds promising signs in the region’s equity finance markets and identifies Cheshire East as a future cluster for net zero activity.

The Nations and Regions Tracker found that the number of smaller businesses using external finance rose slightly in the region with 44 per cent of smaller businesses using external finance in the second quarter of 2022, up one per cent from 43 per cent a year earlier.

The region was one of only three UK regions and nations to see a rise in the use of small business finance. Core debt products remain the most used and widely available across the region. The North West saw a 210 per cent increase in the value of equity deals in 2021 to £863m, a 25 per cent increase in the number of deals.

Q2 2022 data suggests that, despite the current global economic conditions, equity investment in the North West held up in the first half of the year, with deal numbers slightly above and investment seven per cent below H1 2021 levels. Initial data suggests the second half of the year will likely see a slowdown in equity markets.

The report also identified a number of potential future clusters of net zero innovation, with the Cheshire East area highlighted. The area has attracted £175m across 12 net zero equity deals since 2011, though the majority of this was raised in a single deal, worth £150m.

Cheshire East accounts for 18 per cent of net zero deals in the North West and 51 per cent of the investment.

Dr Sophie Dale-Black, UK network director for the North of England at the British Business Bank, commented: “The British Business Bank is committed to reducing regional imbalances in access to finance.

“We are seeing promising signs in the North West’s equity finance markets and data suggests equity investment overall in the UK is holding up in the first half of the year. It is encouraging to see evidence of a potential net zero cluster of investment emerging in the North West, which is already known as a hotbed of innovation and technology.”

By Matthew Neville – Correspondent, Bdaily