More than 1,250 businesses have shown interest in a £660 million investment fund aimed at fostering growth in the North.
The Northern Powerhouse Investment Fund II (NPIF II), launched last March, intends to support businesses across the North East, North West, and Yorkshire & Humber regions. Unlike its predecessor, this new fund is accessible to companies in the North East. The fund targets increased supply and diversity of early-stage finance for small enterprises aiming to start up and scale.
Companies from regions including Newcastle and Manchester have actively sought more information about the fund, underscoring the keen interest in regional business growth. The British Business Bank, in collaboration with delivery partners such as Praetura Ventures, FW Capital, River Capital, and GC Business Finance, oversees the fund. It offers loans ranging from £25,000 to £100,000 and debt finance options from £100,000 to £2 million. Additionally, equity investments up to £5 million are available.
Sarah Newbould, a senior manager at the British Business Bank, noted the high turnout at the Newcastle roadshow, highlighting the strong appetite for business growth in the North East. “The new fund covering the entire region allows us to support innovative and exciting entrepreneurs,” she said. Dr. Cormac Neeson, innovation director at The Growth Company, added that NPIF II has the potential to spur innovation and growth in the strong business ecosystem of the North West, offering a comprehensive range of funding and support for innovative businesses.
Rick McCordall from Newcastle University emphasised the significant role universities in the North East play in fostering entrepreneurialism. He mentioned that working with the NPIF and other funders has resulted in the creation of 38 spin-out companies with close to 350 employees. “We want to see that continue to grow, and NPIF II will be a catalyst for achieving that,” noted McCordall.
The Northern Powerhouse Investment Fund II is part of a broader initiative by the Government-owned British Business Bank, which includes six new Nations and Regions Investment Funds. The previous NPIF excluded the North East LEP area, which opted to run its own North East Fund to ensure European-derived funding benefited the region specifically. Meanwhile, upcoming roadshows in Liverpool, Tees Valley, Lancashire, and Hull will further present fund details until July, with additional dates to be announced for Northumberland, Chester, York, Middlesbrough, and Cumbria.
By providing diverse financial options and fostering innovation, NPIF II aims to bolster the business ecosystem across Northern regions, promising a dynamic and thriving economy.