This edition leads with the highlights from our new report from EY which details comprehensively, and for the first time in one place, the economic contribution of private equity and venture capital across the nations and regions of the UK.
The findings present an industry that is directly supporting 2 million jobs (or 6% of the UK’s total jobs) – with over 50% of these outside London and the South East. The report also shows that PE and VC backed businesses delivered £102bn of GDP in 2021, approximately 5% of total UK GDP.
For the first time in two years, we were delighted to hold the BVCA’s annual Parliamentary Reception again in May. Hosted by Gareth Davies MP, it was gratifying to see so many founders, investors, entrepreneurs and, of course, many parliamentarians from across the UK join us to engage in positive discussion about our industry.
It was encouraging to hear Minister for Science and Research, George Freeman MP, comment that “this sector is key to getting the country on a sustainable footing”. Likewise, we were pleased to hear Shadow Minister for Science, Research and Innovation, Chi Onwurah MP, saying that the Labour Party was committed to supporting private capital to ensure the UK remains a globally competitive financial centre and develops the economic opportunities from its science hub.
This event is one of many ways we are reaching out to you to demonstrate how private capital is driving growth in the UK's constituencies, regions and nations. If you are interested in hearing more about the companies in your constituency backed by private capital, please do get in touch and we would be delighted to set this up.
In this update we also provide you with a deep dive into private capital investment in Yorkshire and the North East of England. We highlight the story behind Maven’s move to open an office in the North East to get closer to the impressive start up scene in this region, and we showcase Nova Pangaea Technologies, an exciting venture capital backed company based in Redcar, which is powering the future of sustainable aviation fuels.
In our regular policy focus, we have highlighted the pressing issues around the EIS and VCT sunset clause. Both of these schemes are essential in funding start ups outside London and the South East but (because of previous state aid rules) they are due to come to an end in 2025. We are hearing that investors are already being advised against supporting these schemes due to uncertainty about their future. So, it is essential that the Government gives its support to the continuation of these schemes now, to keep vital funding going into start ups in all the nations and regions of the UK.
With 2 million jobs supported by PE and VC, it is undoubtable that the industry is a mainstream part of the UK economy. The BVCA is here to help you understand more about the industry and our role in the UK economy. I hope this update helps you with this, and we are always keen to listen and answer any questions you might have about the industry and its role in driving innovation and economic growth across the UK.
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