Equity investment in Yorkshire and the Humber’s smaller businesses reached record levels in 2021, according to the British Business Bank’s annual Small Business Equity Tracker 2022.
The region recorded a 13 per cent increase in the value of announced equity deals in smaller businesses completed last year.
The report also highlighted an 18 per cent increase in the total number of announced deals in 2021 compared to 2020.
The success of Yorkshire and the Humber was part of an exceptional year for equity deals in the UK’s smaller businesses, with 2,616 deals completed at a total value of £18.1bn – nearly double that of 2020. In Yorkshire and the Humber alone, £179m of investment was recorded across 86 deals.
The bank said that the strong momentum has so far continued into the first quarter of 2022, with the volume of Yorkshire and the Humber equity deals involving small businesses between January and March reaching £105m.
The West Yorkshire Combined Authority (WYCA) area drew in the region’s highest levels of equity deals, ranking eighth in the UK’s top equity clusters by announced deal count.
Between 2019 to 2021, the WYCA area secured in an average yearly investment value of £64m, with activity driven by significant deals in the software sector, including cashless technology start-up Tappit and Metaverse game developer Dubit.
The South Yorkshire Mayoral Combined Authority area also made the top 20 equity clusters, ranking joint 14th with an average yearly investment value of £29m.
Sophie Dale-Black, UK Network director for the North of England at the British Business Bank, said: “It’s encouraging to see such buoyant results for the smaller business equity market in Yorkshire and the Humber. There is no doubt this is a step in the right direction and a clear sign of investor confidence in the region.
“Whilst there are signs of this momentum continuing in early 2022, smaller businesses will be mindful of potential economic headwinds in the coming months and year. We will continue to provide businesses with the access to finance they need to start up and thrive in the region.”