Yorkshire and Humber secures £344m investment in 2024, but only accounts for 2% of UK total
Yorkshire and the Humber secured almost £350m in equity investment in 2024, but only accounted for around two per cent of the UK’s total, according to new research.
Research from venture capital firm, Par Equity, and partner Beauhurst, has shown that the region accounted for 1.92 per cent of total UK investment in 2024, up from 1.39 per cent between 2020 and 2024.
The Northern Lights 2.0: Yorkshire’s Calling report suggests that Yorkshire and the Humber saw a 21 per cent increase in its share of UK equity investment between 2020 and 2024, with the region securing £344m in investment in 2024.
While the increase suggests growing investor confidence, the region’s share of total investment deals in the UK remains small at just over three per cent since 2020.
Giles Moore, regional development manager at Par Equity, called for better investment infrastructures in the region.
He said: “Sheffield, Leeds, and other cities across Yorkshire have all the ingredients to compete on the global stage - a highly skilled workforce, world-class universities, and developing tech clusters.
“However, without the right investment structures, we risk seeing the region’s most promising businesses move elsewhere.”
Companies which do secure funding in the region are receiving larger investments than the UK average. The average deal size in Yorkshire rose by 41 per cent, from £1.46m to £2.06m.
This compared to just a 1.25 per cent increase across the UK in the same time period.
Early-stage funding, however, remains a bottleneck, as local venture capital investment in Yorkshire and the Humber fell from 13.2 per cent of total funds invested between 2020-2024 to just 2.78 per cent in 2024.
According to the report, Sheffield leads the region’s investment landscape, attracting £121m in 2024 - bolstered by housebuilder Honey’s £75m round.
Sheffield attracted more than triple the investment seen in the next highest Yorkshire city, Leeds, which raised £38m.
Dr Elizabeth Young, investment manager at Par Equity, added: “The talent in Yorkshire and the Humber is some of the best in the country, and we’re only just beginning to tap into what that means for the UK’s startup landscape.
“Leeds continues to lead the region’s healthtech ecosystem, while Sheffield is making exciting progress with initiatives like the KidsUp Accelerator complementing its deep tech strengths.
“With the West Yorkshire Investment Zone focused on health innovation, alongside collaborative efforts across the region, Yorkshire has the potential to become a significant player in the UK’s healthtech and deep tech landscape .”