Business News Round Up (30/01/2025)
Steep drop in North West venture capital investments in final quarter of 2024
A total of £74.4m of venture capital (VC) investment was raised by North West businesses in the fourth quarter of 2024, between October and December – down 70% from £251.4m in the previous quarter, according to KPMG’s latest Venture Pulse report. While overall funding fell, the volume of transactions increased quarter-on-quarter with 28 transactions completed in Q4, up from 26 in Q3. Businesses in Manchester contributed the largest share of funding raised in 2024, supported by some large investments in life sciences start-ups. This includes an £80.3m funding round into Manchester-based biotech drug developer F2G in Q3, and £34.1m from an early-stage VC investment into biotech firm Ascend in Q4. The North West also saw ample investment into its IT businesses with 13 firms raising a total of £25.4m. This comes after the region’s businesses cited AI, cyber security and digital transformation as key focuses for 2025.
Brexit trading losses cost Scotland £4bn
The cost of Brexit to Scotland’s economy could total £4bn over 15 years, the chief economist has said. In a paper marking the five-year anniversary of the UK leaving the EU, Scotland’s GDP is projected to be two per cent lower than if it had stayed in the bloc due to lost trading opportunities. It concluded Brexit was a “large negative economic shock” based on lost trade alone. Business minister Richard Lochhead has called on the UK Government to “consider its approach to economic growth”. He said: “The Scottish Government has been clear that Scotland’s place is in the EU and the huge European single market. But we are also a voice for greater co-operation with the EU right now and we urge the new UK Government to forge a much closer relationship with our fellow Europeans.”
https://www.holyrood.com/news/view,brexit-trading-losses-cost-scotland-4bn
Manchester unveils £15bn plan to become go-to tourist destination outside London
Greater Manchester has unveiled a £15bn plan to growth its visitor economy by 2030 in a bid to be the go-to tourism destination in the UK outside of London. The new strategy aims to increase the region’s visitor economy from around £9.4bn in 2023 and approximately £10bn in 2024. Greater Manchester leaders are also looking it to become the most visited city-region outside of London, overtaking Edinburgh, and make itself a top 20 European destination. The new plan also pledges that all employees in the visitor economy will earn a minimum of the Real Living Wage and that 30% of all passengers using Manchester Airport will be international origin. The strategy also sets out the aim of Manchester to be ranked as the most sustainable English city in the UK and in the top 50 in the world on the Global Destination Sustainability Index.
BGF sees high level of deal activity after strong year
Growth investor BGF is continuing to see a high level of deal activity after reporting a strong year in its Scotland and Ireland offices. The firm invested close to £50 million in 2024 and announced three exits at Kick ICT, Keenan Recycling and AFG Media – best known for Morphsuits. New Scottish investments included Sulmara, a provider of survey and inspection services to the offshore wind and energy markets; Glasgow-headquartered renewables business Glacier Energy; and EV charging specialist Trojan Energy. BGF also completed a minority investment enabling the acquisition of Dundee-based JTC Furniture by Woodland Kitchens Group. There were follow-on investments in portfolio firms such as Forres-headquartered rocket company Orbex, and Edinburgh-based Hyble, a provider of marketing technology to the global drinks and hospitality sector, to support its growth into the US.