Business News Round Up (01/03/2022)
British Business Bank reveals soaring equity investment in Scotland’s small business
Equity investment in Scotland’s smaller businesses reached £403m by the end of 2021’s third quarter, more than double the same period in 2020, according to the British Business Bank. Total investment values increased by 141% compared to the first nine months of 2020 and were already 42% ahead of the £283m registered for the full year. Across the UK, overall equity investment was on track to double from the £8.8bn seen in 2020. The British Business Bank’s eighth annual Small Business Finance Markets report also found that there were 147 equity deals in Scotland in the first three quarters of 2021, equating to 8% of the UK’s equity deal activity – higher than Scotland’s 6% share of the business population. Demand for finance in Scotland remains robust, with 30% of smaller businesses surveyed stating they would be happy to use finance to grow. On the supply side, 2021 saw growth in Scotland’s local venture capital sector, with 65 unique investors now involved in venture capital investing, nearly double the 33 identified in 2017. Despite the positives seen in Scotland, geographic imbalances in finance remain, resulting in an uneven economic landscape across the UK.
https://www.insider.co.uk/news/british-business-bank-reveals-soaring-26347557
ID Manchester seals £1.5 billion innovation hub deal
The ID Manchester has announced the completion of the £1.5 billion project JV between The University of Manchester and Bruntwood SciTech. The University and Bruntwood SciTech, a joint venture between Bruntwood and Legal & General, have completed legal documentation which will see them work in partnership to enhance, develop, and deliver Manchester’s innovation district that will be a hub of global innovation and cement the UK’s position as a world-leading science and technology innovation hub. The ID Manchester innovation hub will provide specialist infrastructure to power the growth of the knowledge economy and unlock the commercialisation of R&D innovation, with the potential to create more than 10,000 jobs over the next 10-15 years. The hub will be home to the most exciting new ideas and ventures that address some of humanity’s greatest challenges and opportunities. Upon completion, the ID Manchester will be the base for a global community and an exemplar for a new approach to sustainable development. The hub will provide more than four million sq ft of space, including 2.6 million sq ft of new commercial workspace, 1350 apartments, 2 hotels, and a £28m investment in the public realm that will provide a focal point for a vibrant events programme.
Women starting record number of new companies in Scotland, as Rose Review reports
More women than ever are starting new companies in Scotland, with female founded businesses making up a record share of new firms, research for the Rose Review on Female Entrepreneurship reveals today. 5,951 companies were established by women in Scotland in 2021, a figure that has more than doubled since 2018. Research conducted for the Rose Review Progress Report 2022 by mnAI published today reveals that: More than 140,000 companies were established by all-women teams in the UK last year and the figure is growing by a third each year; The proportion of companies created by young women is growing faster than any other age group with 16–25-year-olds founding more than 14,000 new businesses in the UK last year; 134 institutions with an investing power of nearly £1 trillion have now signed up to the Investing in Women Code, making a commitment to improve female entrepreneurs’ access to tools, resources and finance. This is an increase of over 50%.
North West set for record year of equity investment
Equity investment in the North West is set to hit a new record this year. That is the view of the British Business Bank’s eighth annual Small Business Finance Market 2021/22 report published today (March 1). The investment value of equity deals across the region was 275% up in the first three quarters of 2021, against the same period a year previously. Today’s report showed that there were 112 investments in Q1-Q3, up 33%, worth £692m, which far exceeds the £270m of investment in the region in the full year of 2020. The North West also shows a strong demand for finance, with 32% of smaller businesses surveyed in the report saying they would be happy to use finance to grow. During 2021, there was strong growth in the local venture capital sector. Investors now involved in venture capital investing present in the region nearly doubling from 27 in 2017 to 49 in 2021. Proximity between investors and small businesses was identified as a key factor within equity investment.