Venture capital (VC) investment into the Midlands’ start-up and scaling businesses increased in the second quarter of 2025, bucking the national trend, according to the latest KPMG Private Enterprise Venture Pulse report.
The Midlands’ start-ups raised £108.5m in the second quarter of 2025, more than four times the £26m raised in the first three months of the year.
28 investments were concluded in the region – 11 in the East Midlands and 17 in the West Midlands – compared to 12 in the previous quarter, highlighting increased appetite among VC investors looking to support the region’s burgeoning start-up community.
The largest raise included a £14.9m investment into Nottingham-based scheduling platform developer Cronofy – enabling them to pursue further growth both at home and overseas in the US.
Cronofy was one of six Midlands companies in the business and productivity software sector securing VC funding this quarter – reflecting the national trend – as start-ups focused on products and services that streamline business operations continue to gain popularity among funders.
Andy Bostock, Birmingham office senior partner at KPMG UK, said: “Venture capital investment in the Midlands’ most promising early-stage businesses has surged this quarter, rebounding from a Q1 lull. While national investment remains subdued, the Midlands has bucked the trend, demonstrating real resilience.
“The most active areas were innovation-led sectors such as business and productivity software, many of which are leveraging AI as a key development tool. This reflects the adaptability of Midlands businesses in embracing high-growth technologies and leading the charge in innovation.
“The Midlands is fast becoming a hub for high-growth ventures. With continued public and private backing and the right advisory support, these investments have the potential to drive long-term growth, research and commercialisation.”
