Business News Round Up (26/11/2024)
Edinburgh named UK’s most attractive location for foreign investment outside of London
According to the latest quarterly report by law firms Wright, Johnston & Mackenzie (WJM) and Irwin Mitchell, Edinburgh has replaced Brighton as the highest-ranking UK city outside of London for Foreign Direct Investment (FDI) attractiveness. The study, which incorporates the latest analysis by the Centre for Economics and Business Research (Cebr), examines recent changes to the Foreign Direct Investment (FDI) attractiveness of 50 locations based on 10 economic indicators*. It shows 11 of the top 20 FDI hotspots are currently in Scotland, the Midlands, and the North of England. It also reveals these locations account for around 80 per cent of the 24 cities which improved their ranking position compared to Q3 2024. Scotland’s capital moved up to fourth position with an overall score of 49.1. The report says Edinburgh’s strong performance is founded on its consistent performance across all three pillars comprising the Index.
Greater Manchester highest ranked for FDI outside capital
Greater Manchester is now the highest-ranking city in England outside of London for foreign direct investment (FDI) attractiveness. Law firm Irwin Mitchell’s study, which incorporates analysis by the Centre for Economics and Business Research (Cebr), examines the attractiveness of the UK’s largest cities for FDI by analysing 50 locations based on ten key indicators. The report found Greater Manchester has become potentially more attractive to foreign investment since the previous quarterly report but adds there are warning signs for the future due to its slowing economy and poor online connectivity. Greater Manchester moves up three places with an overall score of 47.1. The report says that the authority’s strong overall performance stems from skills, supported by its relatively large number of economically active individuals and strong university presence.
Number of UK VC deals down, though valuations up
While venture capital deals and valuations in Q3 of 2024 are currently valued ahead of 2023’s figures, the number of rounds seems to have dropped, a new report shows. Analysis from PitchBook has shown that VC funding is making a recovery from last year, as inflation and high interest rates ease across Europe. As central banks continue to cut interest rates over the past year and inflation falls, the climate has been primed for better dealmaking. While the number of rounds may have dropped, the size of deals and valuations tied to these rounds have risen. Pre-money valuations are rising compared to last year at the pre-seed, late and venture stages of growth in the UK. They have, however, stagnated at the seed stage, and even down at the early stage. At the pre-seed stage, pre money valuations averaged £3.2m in the UK and Ireland, up 31% from last year.
https://www.digit.fyi/number-of-uk-vc-deals-down-though-valuations-up
UK female funding boost as £250m+ raised for Invest in Women taskforce
The Invest in Women Taskforce has secured over £250 million of funding to support female entrepreneurs in the UK. Described as an ‘historic milestone’, capital has been committed by Barclays, M&G, the British Business Bank, Morgan Stanley, Visa Foundation, BGF and Aviva to invest in female-founded businesses across the country. The funds will be deployed either directly by these organisations or through a ‘Women backing Women’ fund. A process has been initiated to select a fund manager or managers to deploy the latter. The Taskforce aims to create one of the world’s largest investment pools for female-led and mixed businesses and is backed by Chancellor Rachel Reeves. The taskforce investment pool will be deployed via female investment decision-makers across the UK, recognising that female investors are twice as likely to invest in female-led and mixed businesses, breaking down the systemic barriers faced by women entrepreneurs and investors alike.