Bank unveils £150m support fund for fast-growing business
The British Business Bank is committing up to £150million capital to support a fund aimed at high-growth businesses across the North of England.
The proposed Northern scale-up fund will provide larger scale investment to innovative scale-up businesses seeking capital to accelerate their growth and expansion.
The fund is expected to back university spinouts and other innovative, high-growth companies across the North.
It is expected to make investments of between £5m and £15m, complementing the bank’s existing programmes in the region, including the Northern Powerhouse Investment Fund II (NPIF II) and Regional Angels Programme.
The fund’s investment approach will reflect the sector strengths, including creative industries, clean energy and space and technology within the geography it covers, supporting ambitious businesses with the potential to scale and contribute to regional growth.
Leandros Kalisperas, chief investment officer at the British Business Bank, said: “This new Northern scale-up fund reflects the bank’s commitment to addressing regional equity gaps and helping ambitious, innovative businesses in the North of England to have the same opportunity to access the capital they need to grow and thrive as other parts of the UK.
“The proposed fund would provide an important new source of scale-up capital building on the success of our Northern Powerhouse Investment Fund II, which continues to deliver support to smaller businesses of up to £5m of capital.”
Mark Sterritt, the bank’s senior investment director, said: “In just two years, it’s incredible to see just how much we’ve already achieved through NPIF II, unlocking almost £275m in investment for Northern businesses.
“We’re ensuring that businesses of all sizes can scale and grow, creating local opportunity, with a particular focus on breaking down traditional barriers to accessing financing.
“By targeting harder-to-reach areas and founders from diverse backgrounds, we’ve already made great progress in widening access and empowering ambitious entrepreneurs.”
He added: “The launch of the UK’s Modern Industrial Strategy has provided us with a clear framework under which we can support high growth Northern businesses, ensuring our region can compete on a national scale.
“We’re helping to build a strong investment ecosystem, working across Innovation Clusters and Growth Corridors, all ensuring that Northern entrepreneurs can access the capital they need to drive sustainable, long-term growth.”
British Business Bank is a government-owned economic bank specialised in helping businesses in the UK access financial support.
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