Angel investors are livin' on a prayer
Latest analysis shows equity deals involving small businesses at 'historically low' levels
At Rainmakers, we like to sprinkle in quotes that provide some much-needed insight delivered in a pithy, concise and memorable way.
When we don't have that, we turn to Bon Jovi.
"Whoa, we're half way there
Whoa oh, livin' on a prayer"
Ahead of the start of H2 next week - no, we don't know where the time has gone either, and (spoken like a weary England football fan) yes, we're hoping for a better second half - there was a useful reminder from the British Business Bank about the state of part of the market.
Its small business equity tracker report revealed the first quarter of 2025 saw a rise in investment value but the number of deals remains "historically low".
That was a slight improvement on the performance for the whole of 2024, which saw a 15% drop in the number of deals, to 2,048, with the value of equity investment down by 2.5% to £10.8bn.
The EIS scheme alone delivered £700m less to small businesses than just two years ago, a drop of 31%.
It also highlighted the number of angel investors choosing to sit on their hands. "An increasing share reported making no investments, citing economic uncertainty as their biggest barrier", it said.
Or, to put it another way, they decided "we've gotta hold on to what we've got".
Perhaps they really have been listening to Bon Jovi.
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Sam Metcalf interviewed Maven’s regional debt funds partner Johnathan Lowe, who reflected on the impact of “a punishing time for many businesses” and the importance of partnership.
On Thursday, Sheryl Moore looked at Gear4Music’s plans to get a tune out of the assets of failed companies, having made two deals with administrators since Easter.
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Birmingham-based commercial law firm Harper James sealed a deal to take investment from LDC.
The firm aims to expand its legal footprint and make expert advice more accessible to businesses across the UK.
The team has grown to 140+ over the last 10 years, with revenue climbing steadily by an average of 33% annually over the last three years.
With LDC’s backing, in exchange for a 45% stake, Harper James plans to sharpen its legal edge by improving its tech-driven model and pursuing strategic acquisitions to broaden its service portfolio.
Chris Handy from LDC’s West Midlands team will join the board, alongside new chairman Steve Weller, bringing valuable experience in scaling private equity-backed firms.
Founder Toby Harper said: “This partnership marks a significant step forward in making expert legal advice more accessible and affordable for ambitious businesses.
“We look forward to working with LDC to take Harper James to the next level and deliver greater value to our clients and team.”
With final approval pending, this investment is set to help Harper James make its case even stronger in the competitive world of commercial law.
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A Castleford-headquartered provider of specialist services to the facilities management and construction sectors which was a winner at our Yorkshire Business of the Year Awards in February is heading for the roof, rather than resting on its laurels.
Premier Technical Services Group (PTSG), which now has at least 3,000 employees supporting more than 300,000 customer assets, has snapped up Derbyshire-based HD Sharman Group (HDSG).
HDSG, which has been on the scene for 55 years, offers commercial roof maintenance and refurbishment systems and its takeover represents a strategic expansion of PTSG's capabilities in roofing services.
The acquisition is part of PTSG's ambitious long-term growth strategy and follows a number of recent deals designed to broaden the group's service offering and extend its national reach even further.
Only three weeks ago, we reported on PTSG acquiring electrical compliance and safety testing provider, UK Safety Management (UKSM). And last year the group broke new ground with its first overseas acquisition - Netherlands-based fire solutions firm, Flame Control.
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Just a day after signalling plans to appoint administrators, Nottingham-based education recruiter The Protocol Group has secured a lifeline and a new home with Affinity Workforce Solutions.
It’s a top-of-the-class rescue deal that sees Protocol FE, Bookmark, and eSafeguarding join the Affinity umbrella. Together, they’ll continue placing staff across colleges, schools, prisons, and training providers.
The Protocol name stays on the register, but its team now clocks in as part of Affinity’s expanding education group, which already includes Career Teachers, Monarch Education, and Sugarman Education.
Affinity now places nearly 28,000 education professionals a year. While Protocol’s recent accounts showed a dip, with a £565,000 loss and turnover down to £14.9m, a £30m pipeline was still in the works.
As for the deal terms? Still under wraps. But for Protocol, it’s a fresh start and not the final bell.
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