Originally written by Timothy Adler on Small Business
Small businesses received a record £6.7bn in equity funding in 2018, a 5pc increase year on year.
The average deal size was £4.5m, an 11pc increase compared with 2013.
The UK’s white-hot tech sector received 44pc of small business equity funding. Backing for tech businesses increased by 24pc in 2018 with £3bn invested, the highest amount to date.
Small business equity funding outside London increased by 29pc as the capital’s influence as an SME hub waned. The East of England, North East and West Midlands were the three regions driving this regional uptick, where equity finance investment deal sizes grew by 118pc, 115pc and 81pc respectively.
Several UK regions also saw a significant increase in the overall number of deals – up by 65pc in the North East, 15pc in Yorkshire and Humber and 11pc in Wales.
Keith Morgan, CEO of British Business Bank, said: “We are particularly pleased to see a 29pc increase in investment outside of London. The British Business Bank continues to work to address regional imbalances in access to investment to ensure smaller businesses across the UK can access the equity finance they need to fulfil their growth potential.”
Indeed, the UK venture capital sector