The value of equity investment into North West SMEs more than tripled in 2021, according to a new report.
The British Business Bank’s annual Small Business Equity Tracker 2022 shows there was a 213% increase compared to 2020.
The report also highlights a 26% rise in the total number of deals from 2020 to the end of last year.
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The North West as a whole saw £872m of investment across 160 deals, with the business services sector driving the majority of the growth.
Manchester, Cheshire, and Liverpool City Region feature in the top 20 areas by number of equity deals from 2019-2021.
Manchester leads the pack in fourth place with an average of 74 deals completed each year, Cheshire in 12th place (24 deals), and Liverpool in joint 16th place (18 deals).
Manchester also reeled in an average yearly investment value of £333m, ahead of Cheshire (£51m) and Liverpool City Region (£14m).
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 UK invested equity amount in that period.
This was largely driven by the Bank’s Enterprise Capital Funds (ECF) programme, Regional Angels Programme, British Patient Capital and the Northern Powerhouse Investment Fund (NPIF).
Recent commitments made in the North West by the Bank include a combined £30m to fund managers Deepbridge Capital and Praetura Ventures through the Regional Angels Programme.
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: "These results signal the potential for a strong post pandemic recovery for the North West. The region remains a hotbed of investment activity outside of London, with smaller businesses accessing the vital equity finance needed to grow.
"Going forward navigating tough market conditions and focussing on sustainable growth will be key, and that’s where accessing the right finance and wider support will be ever more important.
"We will continue to provide businesses of the future with the capital they need to start up and thrive in the North West."
