West Midlands VC Investment Soars by 78% in Q4, Driven by Major Deal
By Anushka Malhotra
1 minute 47 seconds
Investment
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Quick Read: Venture capital investment in the West Midlands jumped 78% in Q4 2024 to £69.8 million, driven by a major deal with Quanta Dialysis, as the UK retained its position as Europe's top destination for VC funding.
Nearly £70 Million Raised by Regional Businesses as UK Tops Europe for VC Funding
West Midlands businesses secured £69.8 million in venture capital (VC) investment during the final quarter of 2024, a 78% increase from the £39.3 million raised in the previous quarter, according to KPMG’s latest Venture Pulse report.
A total of 22 transactions were completed across the region between October and December, up from 18 in Q3. Birmingham recorded the highest deal volumes, though transactions were spread across the West Midlands.
The standout contributor to the surge was a £48.2 million investment into Warwick-based Quanta Dialysis, a medical device manufacturer specialising in improving kidney care for dialysis patients.
Investor Confidence Remains Strong
Andy Bostock, Birmingham Office Senior Partner at KPMG, highlighted the region's resilience:
"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. While the increase in investment values has been shaped by one major deal, the underlying figures suggest good levels of investment across the board."
He added that investors remain enthusiastic about supporting the most innovative companies in the region.
This follows the KPMG KPE Barometer report, which found that nearly one in five (23%) Midlands private business owners are considering VC funding to support diversification efforts this year.
Tech Sector Sees Continued Investment
The IT sector, particularly software companies, attracted the second-highest investment volumes in the West Midlands. A total of £16.5 million was invested into eight tech companies, spanning financial, network management, and communications software sectors.
UK VC Investment Dominates Europe
The West Midlands’ success mirrored broader national trends. The UK maintained its position as Europe’s top destination for VC investment in 2024. Nationally, £15.5 billion was raised, with a sharp increase in Q4 funding from £3.1 billion to £4.4 billion.
This growth was largely fuelled by a $1.3 billion investment into Greenscale, a London-based AI data centre firm, alongside major raises from companies such as Insider (£409 million) and Lighthouse (£303 million).
Nicole Lowe, UK Head of KPMG’s Emerging Giants practice, commented on the national outlook:
"After a difficult Q3, it’s great to see the UK end the year as Europe’s top destination for VC investment. The rebound in Q4 has boosted optimism among investors looking ahead to the rest of 2025, with AI likely to remain at the forefront."
Despite the positive trends, Lowe noted that global and domestic events, including new UK Budget measures and the impact of the new US President, may influence investor caution in the months ahead.
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