More than £300m of equity investment was raised by smaller businesses across the West Midlands in 2024, according to the British Business Bank’s annual Small Business Equity Tracker, published today.
The West Midlands reported the largest percentage increase in investment value across all UK regions, with an increase of 142% to £301m. This was driven by a £200m funding round for housebuilding company Harper Crewe.
The region accounted for 4.1% of all equity investment activity by the British Business Bank between 2022 and 2024. In line with national trends, deal volume fell in the West Midlands from 68 in the previous year to 43 in 2024. This fall was reportedly driven by heightened market uncertainty in the second half of the year.
Nationally, equity investment fell slightly, by 2.5%, to £10.8bn. A statement from British Business Bank said that while this reflects “a continuation of subdued levels of market activity” since the beginning of 2023, it was still the fifth highest year on record for investment value. Deal numbers fell by 15.1% nationally.
Across both the East and West Midlands, the bank’s Midlands Engine Investment Fund II committed over £17m in this time period, leveraging a further £10m from the private sector to help small and medium-sized businesses.
Geographically, the bank has a higher share of deals in seven of the 12 English regions and devolved nations including the West Midlands. This pattern reflects the expansion in recent years of the Bank’s Nations and Regions Investment Funds, in particular the Midlands Engine Investment Fund II which provides equity finance to firms across the region.
Moreover, several West Midlands universities are known for generating ‘university spinouts’, including the University of Warwick, University of Birmingham, Coventry University, and University of Wolverhampton. These institutions actively support the commercialisation of research and intellectual property through spinout businesses and are developing technologies in sectors such as healthcare, digital, life sciences and manufacturing.
Vicky Mears, UK network director, North of England and Midlands at the British Business Bank, said: “The scale of ambition in the West Midlands is clearly seen in the significant rise in investment value here over the last year. While deal numbers may have dipped in line with the national trend, the value of the deals completed is a glimpse of the region’s potential.
“The West Midlands is supported by a strong eco-system that continues to mature and provide opportunities.”