Despite it being a tough couple of years for the region and the country as a whole, the East Midlands has emerged as a promising area for new and emerging businesses. Tech companies are increasingly moving out of the capital and more investment than ever is helping them grow in the East Midlands. Current data from the third quarter of 2021 showed that businesses in the East Midlands attracted more than £241 million in venture capital (VC) investment. This is a big increase from previous years, as the country’s economy recovers from the effects of the pandemic.
It wasn’t just the East Midlands seeing improved venture capital investment, however. The UK as a whole hit big numbers for VC investment in 2021, with only the US and China attracting more. In total, UK companies received an investment of nearly £20 billion, while China attracted £131 billion and the US saw more than £329 billion.
The growth of East Midlands businesses is partly down to this investment, but also because the area as a whole has become more open for businesses and growth. The Digital Growth Programme provides grant funding, advice and workshops to East Midlands businesses, helping local business owners receive the support they need. In addition, there’s a greater focus on levelling up employees, with businesses helping their staff gain new skills for the digital world. International companies may also benefit from this, forming partnerships with growing East Midlands businesses and driving more growth in the region.
Digital Growth in the East Midlands
Thanks to initiatives such as the Digital Growth Programme, the number of new digital companies in the region is increasing. Digital companies are organisations that make use of digital platforms to provide clients and customers with the products and services they need. The East Midlands Accelerator project was also recently announced, helping to safeguard more than 1,000 jobs while creating 200 new ones in 2022.
This news comes not long after the announcement of a brand new Institute of Technology being opened in the region. The £13 million technology centre was given the green light by the government in December 2021 and will be a collaborative project between the University of Derby, Loughborough University, Loughborough College and the Derby College Group.
By adopting the advanced skills required for AI and a data-driven economy, the East Midlands Institute of Technology will focus on raising the critical engineering, manufacturing, and digital skills needed by employers to handle the great engineering problems of clean growth. Its pioneering graduates will be part of a net-zero carbon workforce that will help the UK lead the green and digital revolution, as well as boost the country’s post-pandemic recovery and road to net-zero greenhouse gas emissions by 2050.
Investing in the East Midlands
Recently, Commercial Secretary to the Treasury Lord Deighton has said that investors are increasingly looking for opportunities outside of London, and the East Midlands offers a lot of value. For property, the region was a big performer over the past few years, emerging as one of the strongest regional markets outside of Greater London.
The development of the HS2 high-speed railway has been a big factor in this growth, while other rail electrification extensions and investment in road infrastructure have also helped promote better transport links across the region. Other projects such as the completion of a sports arena and velodrome in Derby have helped boost the region significantly, attracting further interest from investors.
Interestingly, transport and logistics remain the primary focus of foreign investment in the region, and the UK’s share of the European market for these projects increased in 2021. Only Germany and France attracted more projects in this sector, suggesting that the sector will continue to perform well over the coming years.
