Record-levels of international equity to boost Britain’s small businesses
Despite what has been a challenging year, international investment into all levels of the UK business environment shows that Britain is due a bumper year. International equity into smaller UK businesses grew by 9% last year, according to the British Business Bank. The total of £8.8bn is the highest recorded since the bank started tracking the data ten years ago. A separate report from KPMG confirms 2021 also saw record levels of venture capital investment from overseas – showing that Britain is due a bumper year, and is still seen as a leading place to do business.
According to a report by KPMG, the first three months of 2021 saw venture capital investment grow by 25% on the previous high of £3.9bn raised in Q4 2020. Whilst Germany, the Nordics, Spain and Israel also recorded new investment highs, the UK attracted the lion’s share of large deals, accounting for seven of the top 10 financings taking place in Europe in the opening quarter of the year.
A total of £15.1bn was raised across Europe in the first quarter of the year, with the UK accounting for over a third. The UK also receives over 50% of all Indian FDI projects as the most population destination for investment from the subcontinent according to government statistics.
International equity is not just helping the little guys, but has also been a key factor in the success of Britain’s 100 $1bn startups, and as of last week, Britain now has 100 of these unicorns. As only the third country to reach this triple digit mark, and now as a confirmed world leader for receiving international investment, it is clear that Britain remains a leading startup ecosystem – despite a troubled year.
Gaurav Singh, founder of JPIN VCATS, discusses these positive signs and what they mean for Britain: “These figures show that Britain has had a great year, despite everything, and that it is still seen as a world-leading place to do business. These investment figures will surely translate into an economic boost, whether that’s for Britain’s unicorn startups or small businesses.
This is of course good news for the businesses and investors looking for symbiotic relationships, but also shows the strength and value of the British-Indian relationship – as the UK receives over half of all Indian investment.”