Business News Round Up (24/08/2021)
High growth UK firms raise over £19bn in last three years in deals involving foreign investors
A new report out today from Barclays and Beauhurst reveals the growth opportunities for high growth firms in the UK and their plans to tap further into international markets as they look to bounce back from the pandemic.The ‘Trading Places’ report reveals that British high growth companies have raised £19bn in foreign investment in the past three years alone, with UK businesses proving to be an attractive proposition for international investors. Nearly half of the total equity investment in high growth firms over the past four years was funded by deals with at least one foreign investor. Since 2011, 36% of deals involving foreign investors were for companies raising their first round of equity. The report, which includes data from Beauhurst’s network of over 36,000 high growth UK companies, also shows a boom in US investment. Over the past decade, the annual value of deals involving US investors has grown by more than 620%, amounting to £4.5bn in 2020 alone.
More businesses are launching in the North, research reveals
The North West and Yorkshire and the Humber are proving increasingly attractive as locations for UK start-ups, new research has revealed. Research from Bruntwood Group, the office space property providers, has found that despite London’s reputation as the UK’s main business hub, over 6 in 10 new British businesses (64%) were founded outside the capital. A total of 14% of businesses were found to have started life in the North West, with 30% of those following the likes of Rolls Royce, Boohoo and The Hut Group in launching in Manchester. The research also revealed that Leeds is the best city in the Yorkshire region for new British businesses, with 33% of Yorkshire-based businesses taking their lead from ASDA, Morrisons and Next in beginning their life there.
Scottish private equity investment increases by 54.5%
Scottish private equity investment has increased by 54.5% in the first half of 2021, as investor confidence returned, according to new analysis from KPMG. The volume of deals across Scotland in the first half rose to 54.5% against the first half of 2020 level with the value of deals rising by 17.5%. On a quarterly level, the first quarter saw deal volume in Scotland rise by 12.5% compared to the first quarter of last year. While the second quarter saw the volume of transactions rise by 166.7% compared to the same period last year. The deal value also rose significantly at 353.5%. KPMG’s latest study of UK transactions involving mid-market private equity investors showed a boost of activity in the first half of 2021, as 377 deals were completed with a combined value of £20.7bn – levels which haven’t been seen since the first half of 2017. This is an increase when compared to the same period in 2020, which saw 260 deals with a combined value of £14.9bn. The UK’s private equity market overall was similar, with soaring deal volume and value levels which haven’t been seen since 2017.
https://www.insider.co.uk/news/scottish-private-equity-investments-increases-24816466
Report highlights challenges facing the North’s creative economy
Access to finance, diversity, talent pipeline and digital confidence remain some of the challenges for the North’s creative economy, according to a new report. The Growth Company report, examining the future of the creative sector across the North of England, highlighted that while these barriers remained in the short to long-term, the creative industries are “exceptionally self-aware” in recognising certain barriers and are working towards instilling processes and programmes to mitigate these. The report also pointed out that national funding for the North’s creative industries has been a “good start, but it is not enough.” While it praises the resilience and innovation of the sector throughout the pandemic, it highlights the challenges ahead – and what a lack of investment in the creative industries would mean for Greater Manchester’s creative sector SMEs and wider business ecosystem. According to the Creative UK Group, the North West of England’s creative sector alone has lost £900m and seen a 13.2% decline in gross value added (GVA) due to the pandemic. The North West has the highest creative cluster outside of London, with Greater Manchester home to 19,000 digital, creative and tech companies.