North West businesses beat national trends to raise strong levels of equity investment in 2025, despite a slowdown in deal volumes, according to the British Business Bank’s annual Small Business Equity Tracker.

Throughout 2025, North West businesses raised £1.23bn in equity investment, rising an impressive 82% compared to 2024. However, equity investment was concentrated in a smaller number of deals, with volumes falling by almost a third (32%) to 107 deals over the same period, reflecting investor appetite for select growth opportunities. Cheshire-based unicorn NScale was a major contributor to the North West’s investment growth, raising nearly £1bn across two growth-stage deals in 2025 and accounting for 80%of all equity investment value in the region.

This trend was reflected across the UK, with the top 10 fundraisings accounting for nearly a quarter (23%) of all investment in 2025, the highest level since 2020.Overall equity investment across the UK fell 4% to £12.3bn. Despite the decline, investment remains above levels seen before the pandemic.

Alongside the North West, the South West and Scotland saw significant increases in equity investment value of 104% and 74% respectively.

AI deals continued to dominate across the UK, while funding conditions tightened elsewhere. AI companies accounted for 44% of total equity investment into smaller businesses in 2025, the highest share on record. AI also represented more than a quarter (26%) of all deals, nearly doubling its share since 2022. Investment in AI-related deals rose by 48% year-on-year, highlighting strong investor appetite.The north of England overall made up 12% of the UK’s total equity investment value, rising from 9% in 2024, as London’s dominance waned. The region’s share of total equity investment volume fell slightly to 12% from 13% over the same period, reflecting the concentration on a smaller number of higher value deals.

British Business Bank accelerates investment activity

The British Business Bank supported 15% of smaller business equity deals and 16% of investment between 2023 and 2025, with activity concentrated at early stage where market declines have been most pronounced. Key initiatives like the Northern Powerhouse Investment Fund II (NPIF II) continue to attract equity investment into the region.

The Bank has accelerated its pace of investment following the publication of its Five-Year Strategic Plan in November 2025. By increasing our annual deployment by two-thirds, we are unlocking around £26bn of private capital alongside £13bn of our funding over the next five years. The Bank is also deploying £4bn to boost the most promising businesses in the government’s eight Industrial Strategy sectors.

Mark Sterritt, Managing Director, British Business Bank Local Growth Team, said: “Despite a slight slowdown in deals across the UK, it’s clear the North West’s equity investment market is still strong with such an impressive uptick in investment value. The region is home to some of the UK’s leading businesses, making it an attractive place to do business and crowd in large sums of investment. However, it’s clear we also need to ensure smaller businesses can access early-stage finance where markets have gone quieter, helping to build the next generation of unicorns.

“Through our own activity at the Bank, we’re ensuring that we play an active role in the equity investment eco-system, whether that’s through supporting angel syndicates, boosting innovation clusters, or through our own direct activity with NPIF II. This is about supporting businesses in typically underrepresented areas, while helping to crowd in millions in private sector co-investment that businesses may otherwise struggle to access.”