The Midlands could possibly be an undercapitalised area for companies
The Midlands appear to be receiving a disproportionate amount of corporate investment in the UK
The Midlands are home to 11 percent of the UK’s high-growth businesses, but the region secured only 5 percent of the £ 13.5 billion invested in UK businesses in 2020.
A record £ 665 million was invested in Midlands-based companies through 286 equity trades.
The numbers come from a report commissioned by the Midlands Innovation Commercialization of Research Accelerator (MICRA) and produced by Beauhurst, a platform that provides data on the UK’s high-growth and innovative companies. It is based on data from 3,453 high-growth Midlands-based companies.
The Midlands are already the fastest growing economy outside of London and the South East. It has a global reputation in industrial sectors such as the automotive and aerospace industries, hosts the largest number of medical and device technologies in any region of the UK, and is the foundation of the UK’s research and development in the manufacturing and knowledge industries.
> See also: R&D Tax Relief: How to Make a Successful Claim
This could indicate that the region is undercapitalized. However, the report also highlights the strength of the ‘innovation ecosystem’ and the eight research-intensive universities that make up the Midlands Innovation Partnership behind MICRA as the foundation for the region’s future prosperity.
Midlands Innovation Universities (Aston, Birmingham, Cranfield, Keele, Leicester, Loughborough, Nottingham, Warwick) work with large companies on cutting-edge research and commercialization projects. The report cites collaborations with Jaguar Land Rover, Rolls Royce and Tata Motors. In addition to research and development collaborations, these universities outperform by generating more patents per unit of research income than any other UK university group. The entire region also has a portfolio of 173 spin-out companies.
According to Henry Whorwood, director of research and advice at Beauhurst, it’s the research collaborations and spin-offs that show what the region can expect.
He commented, “If investment is a measure of the success of a region’s high-growth ecosystem, innovation and spin-offs are a measure of its promise. Spin-offs in particular represent a promising asset class for investors. “
Over the past five years, Midlands Innovation has generated successful returns for investors in spin-out companies, including the Native Antigen Company, Allinea Software, and Oncimmune plc.
Continue reading
British universities make £ 61 million on spinout exits
