Lack of local investors leads to wasted economic potential
45%
of businesses using external finance in 2021
86%
of equity investment based in London, South East, East of England and North West, despite hosting just 55% of smaller businesses
Investors favour short distance deals
82%
of equity investment stakes the investor and the recipient business are within two hours of each other and 61% within one hour
30 minutes
between investor and recipients in over 50% of equity stakes in 2020 despite increased remote working under Covid-19
Uneven spread of equity finance
62%
of investment is in London, but it only hosts 19% of the UK’s smaller businesses
60%
of investors into businesses in East of England, South East, East Midlands, and South West are based in London
1.5%
of investment in Yorkshire and the Humber, but it hosts 7% of the UK’s smaller businesses
90%
of equity investors in London businesses are also based in London
Rural business owners more pressed into injecting personal funds
38%
of rural construction business owners used personal funds, compared to 27% of their urban counterparts
58%
of equity deals since 2011 were by the top 20 Local Authorities.
The British Business Bank’s commitment to address regional imbalances
86%
of businesses supported by the Bank’s programmes are based outside of London
£357m
of the Bank's regional funds flowed into regional finance markets in 2020/21
£943m
invested into businesses outside of London in 2020/21