The North West was the most active region for British Business Bank equity investments outside of London last year, according to new data.
The Small Business Equity Tracker has revealed the region was second only to London with the proportion of equity deals completed by British Business Bank supported funds – accounting for 10% of all bank supported fund deals.
Last year the bank put a record £8.8bn into 2,044 small businesses nationally.
The total value of equity investments in the wider market in the North West reached £270m across 117 announced deals.
The Small Business Equity Tracker, which is compiled annually and is in its seventh year, also revealed that regional imbalances were moving in the right direction.
In the overall equity market, the proportion of deals going to companies in London has reduced from 50% in 2015 to 47% in 2020.
The volume of equity deals from the British Business Bank going to companies in London reduced further from 63% in 2015 to 42% in 2020.
Dr Sophie Dale-Black, UK network director, North of England at British Business Bank, said: "The North West continues to be a hotbed for innovation with a rising number of quality tech and life sciences businesses that are fit for equity investment.
"At one end of the scale, we are seeing lots of strong early-stage companies that are securing equity finance, then at the other end of the scale there are tech unicorns like The Hut Group that are pulling in multi-billion-pound valuations listing on the stock market.
"While the latest figures are moving in the right direction and do address the regional imbalances in access to finance, more needs to be done to support ambitious businesses in the regions.
"Given the opportunity available, we would encourage all equity funders tolook to explore the region when it comes to future investments.
"This will not only support growth for local smaller businesses, but it will act as the catalyst to further fuel the levelling up agenda."
