Overview
Despite the robust growth in company numbers, investment patterns present a nuanced picture. Most regions saw a dip in investment levels compared to the previous tracking period. This was largely attributable to a few large transactions in December 2023, which temporarily boosted investment figures. While the number of large deals has tapered, the overall volume of transactions has remained stable, suggesting an increase in smaller transactions. On the other hand, Scotland as well as Yorkshire and The Humber experienced growth across all metrics.
Conversely, the grant funding landscape witnessed some declines across regions. The median change across these regions totaled -18.4%, following the pattern observed in the previous tracking period.
London stands out as the region with the highest number of academic spinouts, with a total of 260 companies. These constitute 17.5% of the national total. Following closely, the South East hosted 251 spinout companies.
Regional highlights
As of April 2024, London accounts for 28.8% of all active and dormant companies in the UK. The capital not only leads in terms of investment volumes, but also in securing grant funding. The East Midlands emerged as the region with the most significant growth in investment, registering a 402% increase. This surge was largely driven by a single deal worth £56.0m by renewable fuel company GeoPura, which constituted 57.3% of the total investment recorded in the region across the period.
The North West experienced the lowest proportional change in investment over the past three months. Companies in the region secured £132m, a decline from the £445m recorded between November 2023 and January 2024. It is important to note that the earlier figure was notably influenced by a significant £145m deal in November 2023 involving sportswear brand Castore, which may have inflated the investment metrics.
Meanwhile, Yorkshire and The Humber recorded the highest growth in grant funding, with a 338% increase over the 12-month period. The largest grant, worth £58.6m, was awarded to broadband provider Connexin in February 2024.
Key metrics
The metrics offer valuable insight into the strength of the UK business ecosystem and the opportunities available to the companies within it. By examining population metrics and trends in new company formations, we gain a deeper understanding of regional appeal and the underlying potential for business expansion.
Furthermore, companies that secure equity investment or innovation grants are well-positioned to scale their operations and refine their business models. Such funding underscores a firm commitment to growth and innovation. Additionally, the presence of spinout companies in each region serves as a crucial indicator of IP generation. This not only enhances a company's competitive edge, but also drives economic growth at both regional and national levels.
UK Business Demography map
Company population:
The information presented in the UK Business Demography – April Update is sourced from Beauhurst, a comprehensive database of UK companies. The data covers the three months up to the end of April 2024. It also includes grant data for the 12 months from April 2023 to April 2024, with growth rates calculated using the grant data for the 12 months from January 2023 to January 2024. The spinout population data is accurate as of the end of April 2024.
Scotland |
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| Company population now: | 298,133 |  |
1.74% |
| Incorporations in past 3 months | 11,956 | |
22.1% |
| Investment in past 3 months: | £242m | |
4.31% |
| Grants in past 12 months (April 2023 - April 2024): | £108m | |
27.5% |
| Spinouts: | 177 | ||
Northern Ireland |
|||
| Company population now: | 90,603 | |
5.13% |
| Incorporations in past 3 months | 5,903 | |
7.98% |
| Investment in past 3 months: | £38.0m | |
20.3% |
| Grants in past 12 months (April 2023 - April 2024): | £42.6m |  |
-39.3% |
| Spinouts: | 56 | ||
North West (England) |
|||
| Company population now: | 531,273 | |
1.97% |
| Incorporations in past 3 months | 25,798 | |
17.6% |
| Investment in past 3 months: | £132m | |
-70.3% |
| Grants in past 12 months (April 2023 - April 2024): | £82.6m | |
-36.0% |
| Spinouts: | 107 | ||
Wales |
|||
| Company population now: | 173,908 | |
4.71% |
| Incorporations in past 3 months | 7,495 | |
23.3% |
| Investment in past 3 months: | £17.8m | |
45.9% |
| Grants in past 12 months (April 2023 - April 2024): | £28.9m | |
-59.4% |
| Spinouts: | 68 | ||
West Midlands (England) |
|||
| Company population now: | 430,404 | |
2.63% |
| Incorporations in past 3 months | 22,128 | |
19.3% |
| Investment in past 3 months: | £30.5m | |
-35.5% |
| Grants in past 12 months (April 2023 - April 2024): | £69.1m | |
-91.1% |
| Spinouts: | 65 | ||
South West (England) |
|||
| Company population now: | 358,330 | |
0.89% |
| Incorporations in past 3 months | 12,985 | |
20.0% |
| Investment in past 3 months: | £121m | |
-9.02% |
| Grants in past 12 months (April 2023 - April 2024): | £122m | |
4.27% |
| Spinouts: | 138 | ||
North East (England) |
|||
| Company population now: | 120,719 | |
2.26% |
| Incorporations in past 3 months | 6,073 | |
26.5% |
| Investment in past 3 months: | £55.4m | |
-61.0% |
| Grants in past 12 months (April 2023 - April 2024): | £44.2m | |
-63.8% |
| Spinouts: | 53 | ||
Yorkshire and the Humber (England) |
|||
| Company population now: | 327,979 | |
2.11% |
| Incorporations in past 3 months | 16,549 | |
25.8% |
| Investment in past 3 months: | £39.0m | |
24.2% |
| Grants in past 12 months (April 2023 - April 2024): | £93.2m | |
338% |
| Spinouts: | 83 | ||
East Midlands (England) |
|||
| Company population now: | 298,216 | |
1.89% |
| Incorporations in past 3 months | 13,061 | |
19.1% |
| Investment in past 3 months: | £102m | |
402% |
| Grants in past 12 months (April 2023 - April 2024): | £40.7m | |
-0.73% |
| Spinouts: | 59 | ||
East of England |
|||
| Company population now: | 497,646 | |
1.94% |
| Incorporations in past 3 months | 20,917 | |
17.3% |
| Investment in past 3 months: | £295m | |
-22.2% |
| Grants in past 12 months (April 2023 - April 2024): | £95.4m | |
62.0% |
| Spinouts: | 169 | ||
London (England) |
|||
| Company population now: | 1,558,656 | |
2.10% |
| Incorporations in past 3 months | 89,071 | |
8.96% |
| Investment in past 3 months: | £2.04b | |
-32.9% |
| Grants in past 12 months (April 2023 - April 2024): | £232m | |
-47.2% |
| Spinouts: | 260 | ||
South East (England) |
|||
| Company population now: | 727,229 | |
1.48% |
| Incorporations in past 3 months | 27,032 | |
19.1% |
| Investment in past 3 months: | £265m | |
-32.1% |
| Grants in past 12 months (April 2023 - April 2024): | £214m | |
-0.93% |
| Spinouts: | 251 | ||
The metrics offer valuable insight into the strength of the UK business ecosystem and the opportunities available to the companies within it. By examining population metrics and changes in newly incorporated companies, we obtain insight into the attractiveness of each region and its capacity to support business growth. Companies securing funds via equity investment and winning innovation grants demonstrate their intent to scale up and develop their businesses. The spinout population in each region serves as an indicator of IP generation, which can provide a competitive edge and hence drive economic growth across a company’s region and the UK as a whole.