Venture capital (VC) investment in Yorkshire reached £30 million in the last quarter of 2024, down 25% from £40 million in Q3 of 2024, according to KPMG’s latest Venture Pulse report.
While overall funding fell, the volume of transactions remained robust, increasing quarter-on-quarter to 17 (up from 15 in Q3).
Start-ups in Leeds garnered the largest volume of investment (41%) but of the £30 million raised in Q4, £15.9 million came from a VC investment, led by Felix Capital, into Cleckheaton-based pet food producer Pure Pet Food.
Elsewhere, the IT sector, and more specifically software businesses, secured the highest number of VC investments (35%), with the majority of firms based in Leeds – a city whose software development sector is growing at an annual rate of 20%, outpacing the national average of 13.8%.
Increased volumes of VC investment reflect the optimism among business owners in the region, with recent data from KPMG’s KPE Barometer revealing that more than a quarter of Yorkshire’s private business owners see VC as a means to financing business diversification this year.
Phil Murden, Leeds Office Senior Partner at KPMG, said: “Yorkshire boasts a fantastic range of start-ups and companies across different sectors and it’s encouraging to see them continuing to attract significant levels of VC investment.
“Despite a mixed picture for the deals landscape at the end of 2024, and challenges within the broader economy, the investor community remains active and we anticipate a positive year ahead as firms look to VC to aid their growth.”
 investment in Yorkshire reached £30 million in the last quarter of 2024, down 25% from £40 million in Q3 of 2024.){kind=link}