New data has revealed that in the UK’s last financial quarter, companies based in the capital received 80.6 per cent of all venture capital investments. The figures are being taken as a sign that many regional hubs remain overlooked by investors.
Companies and individual consumers alike seeking investment advice in Chester, London and other cities with major financial centres often consult wealth managers for guidance. Wealth management teams work closely with their clients and create dedicated investment portfolios based on risk tolerance, ethics and personal circumstances to meet specific financial objectives.
The report released recently shows that £5.8 billion worth of venture capital investments between the months of April and June were funnelled into firms located in London, while a total of £1.4 billion was invested throughout all the other regions of the UK combined.
One of the largest regional deals made in the quarter was the £84 million investment in Freedom Fibre, a Manchester company. The firm’s aim is to bring fibre connectivity to two million buildings based in the northwest of England.
Overall, UK companies raised £7.2 billion marking a distinct decline from the £8.5 billion that was raised in 2022’s first quarter. This fall has been viewed as a sign that rising rates of interest and soaring inflation, along with macroeconomic uncertainty as a result of the war in Ukraine, is now being felt by global investors.
However, despite these factors, venture capital investment for the second quarter surpassed the £7 billion raised in the same period last year. Since the beginning of 2022, venture capital investors have plunged £15.7 billion into UK firms.