There has been a continued fall in small business equity investments across the South West, according to the latest British Business Bank research.
The British Business Bank’s Small Business Finance Markets 2023/24 report noted, that in the first three quarters of 2023, 82 equity deals were completed in the region.
It marks a 33 per cent drop compared to the equivalent period the year before, and in line with a national fall of 29 per cent.
The value of deals in the region also fell, by 51 per cent to £187.5m in the same period, slightly less than the national fall of 53 per cent.
However, the South West was still ranked in the top five regions outside London for the volume of deals, accounting for 5 per cent by number in the UK.
Last year, the British Business Bank launched its £200m South West Investment Fund to increase the availability and supply of finance to all parts of the region.
The fund offers loans ranging from £25,000 to £2m and equity investments up to £5m. It is part of the bank’s commitment to fostering sustainable economic growth by supporting businesses across the South West.
Steve Conibear, UK Network Director, South West at the British Business Bank, said: “Despite the falls we have seen in number and value of equity deals across the region from the unusual highs of 2021 and 2022, this has been in line with national trends and overall the market is still exceeding pre-pandemic levels.
"With the launch of the British Business Bank’s South West Investment Fund last year we have significantly increased the availability of equity finance in the region and we are already seeing the difference this is making in the local market.”
