Businesses based in the north of England attracted some £315 million in venture capital (VC) investment during the first three months of 2021, it has been revealed.
The figures, published by accountants KPMG, form part of the Global Venture Pulse Survey.
According to the report, the north of England – including Liverpool, Newcastle and Manchester – recorded 37 VC deals between January and March this year, representing over £315 million in value or around 10 per cent of all UK deal value.
The “record figures” were bolstered by a huge $100 million (approximately £70.5 million) deal secured by Manchester-based software firm Matillion and a £30 million deal agreed between LDC (the private equity arm of Lloyds Banking Group) and Rochdale-based Wireless CCTV.
Commenting on the figures, Nisha Sharma, M&A director at KPMG in the North West, said: “The North proved its resilience and the strength of its offering against the challenging backdrop of 2020.
“To see it attract record levels of investment in the first quarter of 2021 off the back of its performance then is credit to the character of businesses here and shows the raw ingredients are there for future success.
“While economic risks still exist, particularly with inflation being a real worry and the gradual withdrawal of government support measures, businesses in the North will be feeling confident of growth in the coming months.”
The 2021 Global Venture Pulse Survey also suggests strong VC investment across the whole of the UK. The data shows that some £5.1 billion was invested in UK scale-ups over the same period, up 21 per cent compared to the previous three months, while £1.9 billion was raised across the whole market (including start-ups and established leaders).
Bina Mehta, chair of KPMG UK, added: “The UK continues to be the powerhouse of Europe when it comes to attracting investment in fast growth innovative companies.”
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