VC investments reach £110m for Midlands firms

Businesses in the Midlands secured £110m in venture capital investment during the third quarter of 2022, according to the latest research from KPMG UK.

KPMG UK’s Venture Pulse report said that a total of 31 companies, 17 in the West Midlands and 14 in the East Midlands, received investment in the period.

FSE Group also supported SMEs in the Midlands with growth funding, joining the Midlands engine investment group as an investor.

Among the companies securing investments were Onto, an all-inclusive electric car subscription, and Worn Again Technologies, a recycling firm working to rehaul the textile industry.

Khush Purewal, partner and head of deals at KPMG in the Midlands, said: “Amid a growing energy crisis, economic turbulence, continued pandemic impacts and increased pressures on businesses, funds continue to flow into businesses across all sectors in the Midlands, particularly those with strong ESG roots.

“Whilst some VCs will be focussed on existing portfolios, many have a commitment to investors to deploy capital so there is still dry powder and opportunities for good businesses with solid growth plans.

“Competition for good businesses in strong sectors will be fierce and could lead to some deal heat as we head into the final quarter of the year.

“However, as the economic conditions continue to deteriorate, it is likely that VC investment will remain subdued heading into Q4 2022 and beyond.”