Equity funding reaches record high for SMEs

Sat, 15 Jun 2019 | BUSINESS NEWS



As investment rises outside of the capital, small businesses in the UK are experiencing record-breaking levels of equity funding.

According to research from the British Business Bank, small-and-medium sized enterprises (SMEs) in the UK were at the receiving end of £6.7 billion in investment – an increase from £5.9 billion in the previous year.

Data also revealed that the rise in funding was a result of interest shown in businesses outside of London – which appeared to be dropping in popularity. Companies outside of the capital generated a 29 per cent increase in the value of investments, whilst London fell by 7 per cent.

Chief of British Business Bank, Keith Morgan, commented that the data revealed “a clear sign of investor confidence in British small businesses and their potential for growth.”

In particular, the north east experienced the greatest increase in investment at 65 per cent. Yorkshire similarly saw a rise of 15 per cent, and Wales of 11 per cent.

The research found that small technology companies gained the most attention from investors, securing 44 per cent of all the equity funding in the last year. This is representative of news that recently emerged that the UK is now home to more than 70 tech unicorns with an estimated worth of £789 million.

Despite the optimism of the data, it was found that the overall number of deals made fell by 6 per cent – perhaps a result of the uncertainty that follows Brexit and the instability it brings to the British economy and small businesses.

Although the chairman of advocacy and policy at the Federation of Small Businesses, Martin McTague, hailed the research as positive for small enterprises, he also said: “We do need to look seriously at how we encourage more equity financing for sectors outside of those traditionally associated with this kind of investment.”


Share this article



Latest Businesses for Sale

Designer & Manufacturer of Consumer Entertainment Robotics (Fast Sale)
UK Wide

Expressions of interest for the business and assets are required by 5pm on 24th July 2019 with bids anticipated shortly thereafter. An opportunity exists to acquire the shares or alternatively the business and assets of this UK based, innovative comp...

Asking Price: Offers Invited
Turnover: £5m+

Manufacturer of Precision Instrumentation Products
UK Wide

*Trade Enquiries Only*. A leading UK designer, manufacturer and global distributor of critical components in specified compression fittings with a crucial safety function. Offers invited.

Asking Price: Offers Invited
Turnover: £1,900,000

Manufacturer of Nets
South West, UK

Manufacturer of Nets for everything except fishing. More than 130 years of continuous trading. The Company was founded in 1889 and is a very well established manufacturing business and has been a pioneer in the industry and consistently & successfull...

Asking Price: £450,000
Turnover: £522,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
19
 
Jul
 

Outdoor activity centre completes MBO | BUSINESS SALE

An outdoor water activity centre has been successfully sold ...

 
18
 
Jul
 
 
17
 
Jul
 

Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION

A caravan manufacturing business in Preston is on the lookou...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
19
 
Jul
 

Outdoor activity centre completes MBO | BUSINESS SALE

An outdoor water activity centre has been successfully sold ...

 
18
 
Jul
 
 
17
 
Jul
 

Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION

A caravan manufacturing business in Preston is on the lookou...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources