Value of venture capital investment in Yorkshire almost quadruples in second quarter of 2023
A total of £58 million was raised by the region’s businesses from April to June, up 297 per cent from the £14.6 million raised in the first quarter of the year, according to the report compiled by PitchBook.
Quarter-on-quarter, the number of transactions remained constant at eleven deals. Over half of these transactions, which raised £22.8 million, took place in Leeds, closely followed by York where deals amounted to £17.4 million.
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Hide AdCommenting on the data, Euan West, office senior partner for Leeds at KPMG UK, said: “Amid economic uncertainty, Yorkshire's ability to draw robust VC investments is heartening. The region is gaining global recognition, particularly in the innovation and tech sectors thanks to more control locally, new investment zones, better 5G coverage and the growth of its innovation hubs.
"In Leeds, a dynamic innovation ecosystem is thriving with educational institutions joining forces with entrepreneurs to cultivate startups. Initiatives like the city’s Innovation Arc reinforce this environment further, solidifying Yorkshire as a highly attractive region for strong VC investments.”
While businesses in Leeds contributed the largest share of the £58 million raised, a £17.1 million funding round led by Johnson Resolutions and Veg Capital for York-headquartered vegan food company VFC played a significant part in raising the total value for the second quarter of the year.
At a national level, VC investment into the UK remained stable in the second quarter, as investment levels start to find a new normal following the record levels seen in 2021 and early 2022. £3.2 billion was invested in UK businesses between April and June, with 551 deals completed during that period, down from £3.6 billion from 715 investments in the first quarter.