The level of equity finance deals across Northern Ireland has remained stubbornly low for another year according to the British Business Bank’s annual Small Business Equity Tracker.
In 2024, there were 24 equity deals in Northern Ireland at a total value of £78million, which was down 1.8% on the previous year. The stand-out sector was technology/IP-based businesses which made up 36% of the total deals in Northern Ireland while business and professional services made up 19%.
Meanwhile, across the UK the continued focus on artificial intelligence (AI) was laid bare in the tracker with the average size of AI deals significantly higher than other deals across the wider equity market in 2024.
The average AI equity deal in the UK was £8.3m in 2024, more than 40% larger than the £5.7m across the wider market. At the growth stage, AI deals were on average £36.3m, 2.5 times larger than the wider market, indicating that appetite for AI drives value.
Business angels vital for early-stage equity investment
Business angels continue to be a significant source of equity investment for start-up and early-stage firms with 70% of angels investing in early-stage businesses.
The Small Business Equity Tracker found that two-thirds (64%) of respondents to the Bank’s survey of UK angel investors have matched or increased their investments from 2023 to 2024.
Where angels reported ‘backing underrepresented groups positively impacted investment decisions’, they were most likely to invest in female entrepreneurs followed by entrepreneurs from ethnic minority backgrounds. More than a quarter (26%) of businesses backed by angel investors were led by all-female founders, up from 12% in 2019, further indicating increased focus on female founders.
The British Business Bank has been working in partnership with Awaken Angels syndicate in Northern Ireland since 2023 to support and accelerate the development of female-led angel syndicates, increase the number of investors and boost the flow of capital to female-founded companies. With over 89 angel investors now onboarded and deals completed worth a total of more than £2.3million.
Susan Nightingale, UK Network Director, Northern Ireland, at the British Business Bank, said: “2024 was a challenging year for the equity finance market in Northern Ireland as investment values and deals stagnated. However, it is encouraging to see that university spinouts, including local companies Cirdan and Dia Beta Labs, have contributed to a record-breaking year.”