'Equity investment in Yorkshire's smaller businesses reached record levels in 2021'

The British Business Bank’s annual Small Business Equity Tracker 2022 found that the region saw a 13 percent increase in the value of announced equity deals in smaller businesses last year.

The report also highlighted an 18 per cent increase in the total number of deals in 2021 compared with 2020.

A spokesman said: "The success of Yorkshire and the Humber forms 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, the region saw £179m of investment 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 statement added: "The West Yorkshire Combined Authority (WYCA) area drew in the region’s highest levels of equity deals, ranking 8th in the UK’s top equity clusters by announced deal count. Between 2019 to 2021, the WYCA area reeled in an average yearly investment value of £64m. This activity was 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."

British Business Bank equity programmes are estimated to have supported 14% of UK equity deals in 2019-21, with these deals forming 19% of the overall invested equity amount in that period.

This was largely driven by the Enterprise Capital Funds (ECF) programme, Regional Angels Programme, British Patient Capital and the Northern Powerhouse Investment Fund (NPIF). NPIF has directly invested £332m into 1,024 businesses across the North of England, alongside an additional £489m of private sector co-investment, taking its total delivery to more than £800m

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.”