Businesses in the North attracted £302 million in venture capital investment in the second quarter of 2021, according to a new report.
KPMG’s Global Venture Pulse Survey plotted 75 deals in the region, representing 11 per cent of all UK deals by volume during the quarter.
The most significant investments in Yorkshire were Element Two from Skipton who secured £41m in funding and Rinri Therapeutics from Sheffield who secured £14m.
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Ben Taylor, head of technology mergers and acquisitions for KPMG in Yorkshire, said: “The continued investment in businesses is testament to their vision, strong potential and business models. The venture capital these businesses receive will give them a significant boost as they look to scale their businesses and fulfil their ambitions.
“In keeping with what we are seeing more broadly, there is a lot of interest from investors in businesses with a strong environmental, social and governance agenda, so if your early stage business is able to demonstrate that then you might attract more VC.”
The report found that investors continue to deploy record amounts of money into UK scale-ups with nearly £17 billion raised in the first half of 2021. This already surpasses the total sum raised in the whole of last year.
The research, published using data supplied by PitchBook, recorded more than £6.5bn invested into fast growth UK businesses in the second quarter. A strong Covid-19 vaccination programme and greater business confidence in the post-Brexit environment, resulted in 708 deals being completed, up 7 per cent on the previous quarter.
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Fintech and healthtech businesses attracted the largest deals.
Bina Mehta, chair of KPMG UK and head of the firm’s UK Emerging Giants Centre of Excellence, said: “The UK has demonstrated resilience and adaptability in attracting overseas investment in a post-Covid, post-Brexit era, which is likely due in part to the maturity of our scale-up ecosystem.
“The power of our disruptive businesses to deliver impact on a global scale is more important than it’s ever been, and our UK innovators are a real success story. Venture capital investors, particularly from Asia and the US, continue to be attracted by the strength of our businesses and diversity of our UK scale-up ecosystems across the UK.
“Whilst it is our established late stage businesses that are attracting the big investment, angel investors and university incubators are playing an increasing role in developing strong and active programmes in the regions, which attribute to our diversity and growing number of disruptive scaleup businesses. It is great to see that early stage businesses are starting to attract the funding they need in order to scale. Supporting our early stage businesses will be crucial in order to continue to develop our ecosystem and maintain our global position as leaders in innovation.”
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