In the North East, businesses completed 54 deals in 2025, a fall of 22 per cent on the previous year amid a wider slowdown in UK dealmaking. This trend was reflected across the UK, with overall equity investment falling 4 per cent to £12.3bn. AI companies accounted for 44 per cent of total equity investment into smaller businesses in 2025, the highest share on record. AI also represented more than a quarter (26 per cent) of all deals, nearly doubling its share since 2022. The British Business Bank supported 15 per cent of smaller business equity deals and 16 per cent of investment between 2023 and 2025, with activity concentrated at early stage where market declines have been most pronounced.