The past year has seen a surge in investment for job creation, according to new research.
An analysis of thousands of fundraises in the past 24 months, which compared the figures with the same period two years earlier revealed that the UK had experienced a 50 per cent increase in investment gained in the past 12 alone – a rise of £7.1billion.
What surprised researchers most of all was that, despite the pandemic, across sectors and geographical regions, much of that investment has been used for hiring.
In the West Midlands, for example, investment raised for hiring increased by 100 per cent, 83 per cent in the South East but as little as 29 per cent in London.
The sectors taking advantage of funding were mainly those in technology, retail and leisure and entertainment.
Of those looking specifically at job creation, 35.5 per cent were at seed stage, 48 per cent venture, 10.5 per cent growth and six per cent established.
Jamie Beaumont, CEO of Playter Pay, the company behind the research, said: “Covid-19 has had a massive impact on UK employment. As of May, 4.8 per cent of the population were unemployed and the business community has responded to this by seeking investment to fund jobs creation.
“It’s vitally important that they receive the support they need; not just seed funding, which always has a market, but for growth, venture, and established organisations.
“Without a flexible funding infrastructure, pandemic recovery could easily be hampered. Businesses need new talent to not just scale and diversify, but to re-establish following the disruptions of the last 18 months. Investors have real power to make a difference to the UK’s economic recovery and the health of the UK business ecosystem as we continue towards a post-Covid environment.”
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