South West equity deals have fallen, reveals a British Business Bank report.

The British Business Bank's Small Business Finance Markets 2023/24 report shows a continuing fall in small business equity investment across the South West, in line with the national picture.

In the first three quarters of 2023, 82 equity deals were completed in the region. This is a 33% drop compared to the equivalent period the year before, and in line with a national fall of 29%.

The value of deals in the region also fell, by 51% to £187.5m in the same period, slightly less than the national fall of 53%.

But despite these falls, equity investment is still high by historic standards and during the period was 8% higher in the UK than the equivalent period in 2020.

The South West was still ranked in the top five regions outside London for the volume of deals, accounting for 5% by number in the UK. London still dominates with 46% of all deals in Q1-Q3 2023.

Last year, the British Business Bank launched its £200 million South West Investment Fund to increase the availability and supply of finance to all parts of the region. The fund offers loans ranging from £25,000 to £2 million and equity investments up to £5 million and is part of the Bank's commitment to fostering sustainable economic growth by supporting businesses across the South West.

Steve Conibear, UK network director, South West at the British Business Bank, said: "Despite the falls we have seen in number and value of equity deals across the region from the unusual highs of 2021 and 2022, this has been in line with national trends and overall the market is still exceeding pre-pandemic levels.

"With the launch of the British Business Bank's South West Investment Fund last year we have significantly increased the availability of equity finance in the region and we are already seeing the difference this is making in the local market."