The Midlands region in the United Kingdom witnessed a surge in venture capital (VC) investment during the fourth quarter of 2024, totaling £69.8 million. This represents a significant 78% increase compared to the previous quarter, demonstrating the region's growing appeal to investors. The IT sector, particularly software companies, attracted the highest investment volume, indicating a strong focus on innovation and technological advancement.
A total of £69.8 million worth of venture capital (VC) investment was raised by Midlands businesses between October and December 2024. The figure was up 78 per cent from the £39.3 million raised in quarter three, according to KPMG ’s latest Venture Pulse report. Twenty two transactions were completed across the region, up from 18 in the previous quarter. Deals were spread evenly across the region, with the highest volumes taking place in Birmingham.
\More broadly, the IT sector, specifically software companies, saw the highest investment volume in the Midlands, with £16.5 million invested into a total of eight companies, spanning financial, network management and communications software. This latest data follows KPMG’s recent KPE Barometer, which revealed that at least one in five (23 per cent) of the Midlands’ private business owners see venture capital as a means to finance business diversification this year. \Andy Bostock, Birmingham Office Senior Partner at KPMG, said: “It’s great to see Midlands firms continuing to attract significant VC interest during Q4, which is testament to the region’s thriving private business ecosystem. And while the massive increase in investment values has been shaped by one major deal, the underlying figures suggest good levels of investment across the board. “The quality of scaling businesses in the region remains as strong as ever, with investors remaining supportive and standing ready to inject capital into the most innovative companies.” The UK attracted the highest level of VC investment in Europe in 2024, following a strong end to the year. The UK raised a total of £15.5 billion VC investment after funding in Q4 jumped by more than a third from £3.1 billion to £4.4 billion. This was driven largely by $1.3 billion raised by Greenscale, a London-based AI data centre firm. A total of 569 businesses made up the £4.4 billion investment, including £409 million raised by Insider and £303 million raised by Lighthouse. These results come just weeks after KPMG published its first ever KPE Barometer, which revealed that over 90% of Britain’s private business owners are confident of growth in 2025. \“After a difficult Q3, it’s great to see the UK end the year as the top destination in Europe for VC investment. “The strong rebound in Q4 has boosted optimism among investors looking ahead to the rest of 2025, with AI likely to remain at the forefront of those looking to invest. “However, the impact of both global and domestic events such as the UK Budget measures and the new US President taking office could still contribute to a level of investor caution.”
Venture Capital Investment Midlands UK IT Sector Software KPMG
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Next's £69 winter boots are 'so comfy' shoppers say they 'feel like slippers'Update your winter footwear with Next's Forever Comfort Leather Slouch Ankle Boots that are ideal for the icier conditions.
Read more »
This £69 Debenhams Military Coat is a Winter Wardrobe Must-HaveDebenhams is currently offering a 30% discount on the Dorothy Perkins Military Double Breasted Maxi Coat, bringing its price down to £69.30. This stylish and practical coat is available in three colors and sizes eight to eighteen. Shoppers are raving about the coat's quality, warmth, and versatility.
Read more »
Sleep deprivation could be costing Midlands businesses £1,248 per employee per yearHalf of UK employees struggle with sleep, impacting wellbeing, mood and workplace safety, says leading UK sleep charity, Sleep Action
Read more »
'Iconic' Dragon's Den star to share expertise with West Midlands businessesDragon’s Den legend Deborah Meaden is heading to the West Midlands next month to share her business expertise.
Read more »
British Business Bank Supports 18,000 West Midlands Businesses, Creating 16,000 JobsThe British Business Bank's new report reveals its significant impact on supporting smaller businesses in the West Midlands since 2014. The Bank has helped 18,000 businesses, projected to generate £6 billion in additional turnover and boost the regional economy by £3 billion. These businesses are expected to create 16,000 new jobs and sustain nearly 202,000 existing ones.
Read more »
BCRS Business Loans Reaches £2 Million Milestone Supporting West Midlands BusinessesBCRS Business Loans has surpassed £2 million in small business loans provided through the British Business Bank’s Midlands Engine Investment Fund II. The initiative has supported 35 small businesses in the West Midlands, creating 330 new jobs and safeguarding 107 existing roles. This success builds on the legacy of the first Midlands Engine Investment Fund and BCRS's commitment to providing crucial financial support to businesses in the region.
Read more »