A Mapping Study of Venture Capital Provision to SMEs in England

The supply of venture capital to SMEs in England varies dramatically from one region to the other. This study, however, shows that the distribution of capital around the country would be considerably more uneven were it not for the activities of publicly-backed funds. Most are almost unique within the venture population in having an explicit regional focus, thereby going some way to address regional equity gaps. They are also significantly more likely to make smaller investments, sub-£500,000, than the other providers of capital, thus addressing an investment stage gap. Indeed, the evidence suggests their establishment has been almost entirely complementary to the existing universe, rather than creating distortions in the market.[...]