If you're a founder, you know how tough it is to raise capital at the moment!
I joined Henry Whorwood and Toby Brown for their online review of Beauhurst's "The Deal 2024" yesterday morning. Time and reflection since the report was published a few weeks ago, hasn't made the numbers or charts look any better - despite Henry's attempts at positivity!
2024 - and in particular the latter part of the year - was really tough for fund raising. The overall amount of funding raised in 2024 fell by 19% to £16.5bn, with the number of deals dropping 24% to 5256.
This is the continuation of a downward trend since the peak in 2021 - where over £31bn was invested across 8252 deals.
For me, what was even more concerning was the dramatic fall in funding in the South West. The numbers are a little unclear as Beauhurst have added in data around "unannounced funding" for 2024, but in 2023 the South West attracted 5.4% of the £16.5bn of announced funding across the UK.
In 2024, the number (for announced and unannounced funding) was just 2.4%. This compares to places like the North West that jumped from 4% to 10.1%. London continues to dominate with over 58% - no surprises there - but what appears to be a sharp decline in the South West is a cause for concern.
To help better understand this, and the wider investment ecosystem, on 19th March Tech South West is hosting it's first of four Investment Summits and Showcases in 2025 - two Summits in the South West with two London Showcases in May and September - as part of it's Funding & Finance Programme for 2025.
The focus for the March Summit is Deeptech (an increasingly broad church that takes in AI, Cyber, Quantum, MedTech, BioTech and Robotics), a key area for the South West.
I'm going to be particularly interested in Nikhita Govekar of Beauhurst's review of the South West investment environment - and to drill into those numbers.
The afternoon event is jammed packed with speakers, and an impressive panel of DeepTech investors who can shine a light on the sector for us. The key note is to be delivered by Adam Kelly of British Business Bank: British Business Investments, but there is also Lauren Crawley-Moore from London Stock Exchange talking about its planned PISCES exchange, and Professor Matt Freeman talking about DeepTech support at Future Space - Bristol.
If you want to join me (and 120+ other investors, founders and ecosystem players), you can grab a ticket here: https://lnkd.in/eX-MHMCs
British Business Bank British Business Bank South West Howden, the new name for Aston Lark RWK Goodman Business West Innovate UK Angel Investors Bristol Access to Finance SW Chris Oliver Oxford Innovation Finance Melanie Goward Maven Capital Partners Catherine Fletcher SCVC Matthew Hicks Fortescue Capital Harry Alexander QantX Richard Yorke