Equity investment across the UK fell slightly (-2.5%) to £10.8 billion in 2024, with deal volumes down 15.1%, returning close to 2018 levels.
Initial H1 data from 2025 suggests that the contraction in equity activity is continuing across the UK, reflecting continued market uncertainty.
Despite this, we observe that equity remains a crucial component of the funding mix for high-growth SMEs, particularly in the tech and innovation sectors.
In upcoming posts, we’ll explore alternative equity models, such as revenue-based financing and hybrid debt-equity instruments, and how they are gaining traction among SMEs seeking flexible capital solutions.