Figures published on Monday by KPMG revealed businesses in the region received VC investment worth £122.2m, down from £173.4m in 2017. Tony McDonough reports

Venture capital (VC) investment in the North West fell by 30% in 2018, new data shows.

Figures published on Monday by KPMG revealed businesses in the region received VC investment worth £122.2m, down from £173.4m in 2017 and the same percentage drop as the rest of the North.

The word performing region was Yorkshire where VIC investment plummeted 69% to £40.4m. In contrast, North East businesses saw a 151% rise from £25.5m to £64m. There was a 4% fall across the UK from just over £8bn to £7.8bn.

Northern businesses received £226.55m in venture capital investment in 2018 across 100 deals, according to the latest Venture Pulse report published by KPMG. This was down from £327.33m in 2017.

Despite the total value of investment falling at a significantly higher rate than the UK average, the North performed better in terms of maintaining deal quantity – a 14% drop compared to the UK average of 25%.

Graham Pearce, KPMG’s head of technology in the North, said: “The North remains a fertile and active market for venture capital but investors appear to be keeping their powder dry as they wait for trading conditions to become clearer, particularly given the risks when working with early stage businesses.

“Our report indicates that there is still a healthy appetite from seed through to later stage investment, particularly with IT and healthcare businesses, as northern research hubs continue to perform highly.

“As such, the region should strengthen its resolve to prosper in 2019 even if investors remain shy in the first half of the year.”