British Business Bank (BBB) has launched its second Northern Powerhouse Investment Fund that will deliver £660m to startups across the north of England.
BBB, the UK’s state development bank for SMEs, launched its first Northern Powerhouse Investment Fund in 2017 to increase the flow of capital to startups in the north of England.
The new fund will continue this work, offering equity investments of up to £5m and loans of up to £2m to companies in the North West, Yorkshire and the Humber and now the North East.
“From creating hundreds of jobs to developing ground-breaking products, we have seen companies that previously lacked funding options accelerate forward in their growth journeys, which has ultimately benefitted the whole of the northern economy,” said BBB chief executive Louis Taylor.
“This is why it was important to continue the Northern Powerhouse Investment Fund into its next phase.”
Taylor said the additional funding as well as greater reach in the North East means the next iteration of the fund will “engage more stakeholders across the regions, bringing the business community closer together to create more opportunities for entrepreneurs everywhere”.
The fund will be managed by GC Business Finance, River Capital, Praetura Ventures, Mercia, FW Capital and British Enterprise Fund.
Startups previously backed by the fund include hydrogen generator company Suiso, cybersecurity company Netacea and IoT company FourJaw.
“This new fund will unlock millions in equity and loans for SMEs across the north to realise their full potential and builds upon British Business Bank’s vital work ensuring that any small business owner in the UK can scale up and grow,” said Minister of State for Enterprise, Markets, and Small Business Kevin Hollinrake.
“SMEs are the engines of growth for our economy and across government we are improving access to finance, cutting red tape and removing barriers to ensure that they can go further and faster than ever before.”
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