Diving into the South West's Equity Investment Landscape

On Wednesday 29th January, we hosted the much-anticipated Annual Investment Review at PwC’s offices in Bristol. The event, a cornerstone for the South West’s tech and investment community, centred around the release of the Annual Investment Report, offering a comprehensive overview of the region’s equity investment landscape over the past year. The evening featured insights from industry leaders, a panel discussion, and opportunities for networking with some of the South West’s most dynamic start-ups and investors.

The event kicked off with opening remarks from our very own Charly Patrick, COO at techSPARK, and Ben Shorrock, CEO at techSPARK. Charly highlighted our mission to foster growth within the tech ecosystem, emphasising the pivotal role that investment plays in driving innovation and economic development across the South West. Ben then expanded on this, reflecting on techSPARK’s journey over the past year and the resilience shown by the regional tech community amidst broader economic uncertainties.

Ben noted, “Despite the global headwinds, the South West continues to demonstrate strong growth, underpinned by a vibrant ecosystem of start-ups, scale-ups, and investors who believe in the transformative power of technology.”

Henry Whorwood from Beauhurst took the stage to present the key findings from the latest Annual Investment Report. His data-driven presentation shed light on the performance of the South West compared to the rest of the UK, highlighting both achievements and areas ripe for improvement.

Key figures from Henry and the report included:

• Total Equity Investment: The South West secured over £587 million in equity investment across 2024, marking a slight decline from the previous year but still significantly above pre-pandemic levels. The South West’s decline from £606 million in 2023 is a smaller decline than much of the UK is seeing as we enter a cooling off period after the pandemic, partly due to over-extended investors, reducing liquidity and move from riskier assets.
• Number of Companies Raising: There were over 320 equity deals completed, showcasing a healthy appetite for early-stage and growth investments despite economic challenges.
• Sector Highlights: Cleantech is doing well and seeing growth year on year with different kinds of funds being set up to back those companies,these are often young funds and companies so are not affected by the liquidity crunch as much as others.. AI is unsurprisingly doing well, whilst Fintech has seen a decline from its traditionally strong UK position.
• Investor Landscape: Increasingly money is coming from abroad, and in larger amounts, in fact the larger the deal the more likely it is to have foreign capital in it.

Henry emphasised, “While the overall number of deals has stabilised, we’re seeing larger average deal sizes, indicating growing confidence in the region’s scaling companies.”

Key Discussion Points:

• Retention vs. Growth: Marty Reid highlighted the tension between retaining talent and companies within the region versus supporting their growth on a national or global scale. “It’s about creating an ecosystem where companies can scale without feeling the need to relocate to London or abroad,” he noted.
• The Role of Policy and Infrastructure: Rosie Bennet discussed the impact of government policies and local infrastructure on investment flows. “Strong regional support networks, combined with proactive policy measures, can significantly enhance investor confidence,” she argued.
• Global Ambitions: The panel agreed on the importance of fostering global ambitions among South West start-ups. Henry Whorwood pointed out, “International investment is crucial not just for capital, but for opening doors to new markets and strategic partnerships.”

The panel then opened the floor to questions from the audience, sparking lively discussions around practical challenges faced by entrepreneurs. Topics ranged from the availability of seed funding to strategies for attracting international investors.

One notable question addressed the risk of ‘brain drain’ and how the South West could better retain its top talent. The consensus was clear: creating a compelling ecosystem with ample growth opportunities, strong mentorship networks, and access to diverse funding sources is key.

Throughout the event, several emerging trends became evident:

• Increased Focus on Sustainability: Greentech investments have surged, reflecting broader societal shifts towards sustainability. Companies in renewable energy, clean tech, and sustainable consumer goods are attracting significant attention.
• HealthTech Innovation: Driven by post-pandemic health priorities, HealthTech continues to be a hotbed of innovation, with investments in telehealth, biotech, and medical devices growing rapidly.
• Diverse Funding Sources: There’s a notable increase in the variety of funding sources, including angel networks, venture capital, and corporate investors, alongside public funding initiatives.

Looking ahead, the South West’s tech ecosystem appears to have many key assets for growth. The region’s combination of talent, innovation, and an increasingly sophisticated investment landscape bodes well for the future. However, as the panellists emphasised, sustained success will require ongoing collaboration between entrepreneurs, investors, and policymakers.

The event also showcased a range of exciting start-ups currently raising funds, a few named were:

• Good With Limited: A fintech platform focusing on hyper-personalised money and mental health support, aiming to raise £600k.
• Space Bands: A company innovating in people tracking and safety technologies, with a target of £750k.
• OpenEnergy: Seeking £1.35 million for energy-as-a-service solutions.
• Ferryx: Raising £1.5 million for next-gen proboiotics.
• Maypole Education: Aiming for £300k to expand its SaaS learning platform for schools and families

These companies, along with many others highlighted during the event, underscore the breadth and depth of entrepreneurial activity in the South West.

As the evening wrapped up, there was a palpable sense of optimism. While challenges remain—from economic headwinds to competitive global markets—the South West’s tech and investment community has demonstrated resilience, adaptability, and an unwavering commitment to growth.

Ben Shorrock concluded, “The South West isn’t just keeping pace; we’re setting the pace in many areas. Our ecosystem is vibrant, diverse, and ready for the future.”

The Annual Investment Review not only celebrated the region’s successes but also reinforced the importance of continued collaboration and ambition. With the foundations firmly in place, the South West is well-positioned to be a driving force in the UK’s innovation economy for years to come.