A recent study has found the South West was just one of two regions to see an increase in equity deals in 2022.
The British Business Bank's annual Small Business Equity Tracker showed 155 equity deals completed in the region last year, with three deals a week completed on average with a total value of more than half a billion pounds; this was an increase of 4%.
Yorkshire and The Humber and Wales were the only two other nations or English regions that saw an increase in deal numbers.
Overall deal value in the South West was down by almost a third at 32% to £540m following a record year in 2021, which included several £50m-plus deals. Nationally there was an 11% decline in total UK investment value to £16.7bn, driven by a "downturn in market conditions".
Read more: WH Smith completes bank refinancing with new long term £400m sustainability linked facility
The total number of UK deals also saw a decline of 7%, falling from 2,912 in 2021 to 2,702, the first annual drop in equity deal volumes since the Beauhurst data series began in 2011.
Steve Conibear, UK network director, South West said: “In the South West deal volumes held up well compared to nationally, but values fell, reflecting the wider market. Encouragingly however, the Bank’s geographically focused programmes are playing an important role in increasing access to SME equity finance.
"Our regional fund in Cornwall and Scilly supported a third of all equity deals in that area in 2022 and we will shortly launch our £200m South West Investment Fund. This is the first of our £1.6bn Nations and Regions Investment Funds and covers the whole of the South West, offering equity investments of up to £5m.”
The region saw a record year for university spinouts, with the University of Bristol and Falmouth University performing well. Out of the £2bn equity investment in spinouts, the South West saw 12 deals worth £33.8m, including deep tech firm FocalPoint with Bristol offices raising £15m to develop its GPS navigational technology.
In Cornwall, Falmouth University tech spinout Codices secured £650,000 equity including £250,000 from the British Business Bank’s Cornwall and Isles of Scilly Investment Fund.
Cleantech investment was also strong in the South West with companies in the region receiving £7.1m over eight deals in 2022. These included a £1m investment in Gloucester-based Wild Hydrogen and Cornwall's marine engineering business Triskel Marine in Hayle secured £3.2m.
Read next:
Former Bath Press premises on the market for mixed used residential development
Somerset housebuilder secures nearly £6m funding for regeneration project
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
