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The South West of England has posted its strongest equity investment performance in years, with fresh data showing deal volumes up 11 per cent in Q1 2026 and total investment value jumping 66 per cent year on year, almost twice the national growth rate.

South West outpaces UK for tech investment

The South West of England has posted its strongest equity investment performance in years, with fresh data showing deal volumes up 11 per cent in Q1 2026 and total investment value jumping 66 per cent year on year, almost twice the national growth rate.

The figures were unveiled as Tech South West brought the region’s high-growth story to London during London Tech Week.

The annual Tech South West London Showcase drew a record number of investment funds, with backers meeting companies from across Cornwall, Devon, Somerset, Dorset and Wiltshire at Howden HQ in central London.

The event also marked the national launch of the Great South West High Growth Business Tracker, which identifies the 100 highest-growth-potential businesses in the region.

According to Beauhurst insight cited by Tech South West, the South West’s performance outpaced the UK as a whole, where investment value rose 34 per cent in the same period.

The tracker’s 100 businesses hold about £4bn in combined assets, with 65 per cent forecast to deliver at least 20 per cent growth over the next 12 months and 64 aligned with the UK Government’s Industrial Strategy priorities.

Dan Pritchard, founder of Tech South West, said: “Sovereignty and Opportunity in a Fractured World describes exactly what the South West represents right now: a region with the industrial depth, sovereign capability and proven companies to meet the demands of a world that has fundamentally changed.”

The latest quarterly report, The Lowdown SW Investment Briefing, is themed Sovereignty and Opportunity in a Fractured World and brings together news and insight from investors, policymakers, founders and industry leaders. It includes a deep dive into defence, clean energy, agritech and other sectors seen as regional strengths.

The showcase and report were developed through Tech South West’s Funding and Finance Programme, with support from Angel Investors Bristol, Bishop Fleming, NatWest, RWK Goodman and Steampunk Ventures. The region’s funding base is also becoming more local, with the share of South West deals involving a South West-headquartered investor rising to around 9 per cent in Q1 2026.

That growing confidence is being driven by bigger deals and a stronger pipeline. CleanTech, advanced manufacturing and life sciences dominated the largest transactions, including Vertical Aerospace’s £38m round, Tungsten West’s £44m raise and Astral Systems’ £19m fusion energy funding.

Ahmed Goga, director of the Great South West Partnership, said: “The High Growth Tracker is a vital moment in the development of the region’s innovation ecosystem and sets out its central role in powering the nation’s economy.

“Defence, clean energy, food security, advanced manufacturing: these are the UK’s growth priorities, embedded in the Government’s Industrial Strategy, and these are where the Great South West have high growth companies in abundance.

“They now need to be backed with the capital needed to turbocharge the exciting new products and services being created which can win in key global markets for the UK. The mission now for public and private investors is to seize the opportunity and address this critical structural gap in UK regional investment.”

Scott Preece, partner at RWK Goodman, said: “The South West has real momentum and the data is starting to reflect that.

“There is still work to do in connecting the right businesses to the right capital at the right stage — but the pipeline is stronger, the evidence base is clearer, and the region is moving in the right direction.”

Looking forward the ClimateTech Founders Summit takes place on June 18 in Devon, the Somerset Ignite Investment Summit on June 30, and Tech South West’s Digital Conference takes place on July 9.

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