The British Business Bank released their 2020 Small Business Equity Tracker report on 26 June 2020, providing an in-depth assessment of equity finance markets for growing businesses throughout 2019. In 2019, a record number of equity investments were carried out (1,832) reaching £8.4bn, up 24% on 2018 and over double the amount recorded in 2016. London based businesses received 66% of these investments and completed 48% of all deals, compared to only 3% and 12% respectively in Scotland. It is no surprise that the capital is leading in the investment and deal arena and this is consistent with previous years. Whilst 3% may seem small, Scotland completed approximately 210 investments in 2019 compared to around 170 in 2018. This shows that Scotland is still an appealing place for businesses to be based with viable investment opportunities available with Edinburgh ranking 5/25 for deals in the UK, and Glasgow ranking 9/25.
What did the report highlight?
The report highlighted that the most prominent sectors in Edinburgh and Glasgow for investment were Technology and Life Sciences respectively. Our statistics show that 43% of our investments in 2019 were for technology businesses and 22% for life sciences, matching the trends of the BBB report and confirming these types of businesses are currently showing as the most lucrative for investment. As a whole, the technology sector received 27% more of the investment deals in the UK compared to 2018 demonstrating that the tech industry is still on the rise.
Investment Transactions at Harper Macleod
In 2019, Harper Macleod achieved record levels of investment transactions in compared to previous years, obtaining over £250 million in investment for companies. The statistics are not yet in as to the impact that COVID-19 will have on the investment market throughout the UK. It is clear however that the impact will be large, with deals in Q1 of 2020 falling by 15%. Despite this, we have still been busy and in the first month of lockdown we still managed to complete 30 deals worth around £50 million, with this figure continuing to increase over the last few months. Scotland is still open for deals and for investment, so please get in touch if we can be of assistance.
Get in touch
If you would like advice on any aspect of business or investment, please get in touch with a member of our team.