North West equity market rebounds with growth in deals and value

Total equity investment into smaller businesses across the North West of England increased by 46.2% to £654 million in 2024, despite a nationwide slowdown in activity, the British Business Bank has found.

The British Business Bank’s annual Small Business Equity Tracker also noted the volume of equity deals in the region also increased in 2024, rising by 11.5% to 146 deals, with the North West one just three UK regions to see both volume and value rise.

In 2022-24, 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 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.

These findings differ from those across the UK. Full year data shows that investment declined by 2.5% to £10.8 billion 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.

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.”