A total of £69.8 million worth of venture capital (VC) investment was raised by Midlands businesses between October and December 2024, up 78% from the £39.3 million raised in Q3, according to KPMG’s latest Venture Pulse report.
22 transactions were completed across the region, up from 18 in the previous quarter. Deals were spread evenly across the region, with the highest volumes taking place in Birmingham.
£48.2 million, the majority of the total regional figure, was generated by VC investment into Quanta Dialysis, a Warwick-based medical device manufacturer that improves the dialysis experiences of patients undergoing kidney care.
More broadly, the IT sector, specifically software companies, saw the highest investment volume in the Midlands, with £16.5 million invested into a total of eight companies, spanning financial, network management and communications software.
This latest data follows KPMG’s recent KPE Barometer, which revealed that at least one in five (23%) of the Midlands’ private business owners see venture capital as a means to finance business diversification this year.
Andy Bostock, Birmingham Office Senior Partner at KPMG, said: “It’s great to see Midlands firms continuing to attract significant VC interest during Q4, which is testament to the region’s thriving private business ecosystem.
“And while the massive increase in investment values has been shaped by one major deal, the underlying figures suggest good levels of investment across the board.
“The quality of scaling businesses in the region remains as strong as ever, with investors remaining supportive and standing ready to inject capital into the most innovative companies.”
