Five "innovation clusters" across the North of England will share in more than £50m worth of funding from the British Business Bank.
The bank is allocating £100m across the UK to support "high growth businesses aligned with the Government’s Modern Industrial Strategy", with more than half that cash allocated to the North. The funding can be invested in businesses in sectors including clean energy, life sciences, advanced manufacturing, digital, and professional and business services.
Regional allocations
In the North, £17.5m will be allocated to Greater Manchester, £13.5m to West Yorkshire, £12m to the North East, £9m to Liverpool City Region and £5.5m to South Yorkshire. It will be delivered by the equity fund managers already working on the bank's Northern Powerhouse Investment Fund II – PXN Ventures, Mercia Ventures and Maven Capital Partners.
Adam Kelly, managing director of debt & regional funds at the British Business Bank, said: "The North is home to some of the UK’s most exciting businesses, yet many have historically struggled to access the capital needed to scale. These new Innovation Clusters will help to bridge this gap, building on the success we’ve already achieved through NPIF II to target the high-growth industries that won’t just be important for regional growth, but also national growth."
Industrial strategy backing
Kelly added: "The Government’s Modern Industrial Strategy sets out a clear framework for us to work from, allowing us to fully realise the regional strengths we have here. And with the North getting over half of the national allocation, it shows just how much momentum and potential there is here."
The £660m NPIF II fund was launched two years ago and has so far invested some £275m into more than 400 businesses.
Recent investment example
One company that secured recent investment through the fund was Made With Intent, a Liverpool City Region-based tech company which raised £2.4m in an investment round led by NPIF II – PXN Equity Finance, along with existing investors Mercuri and Haatch. The business will use the funding to grow its team, bolster its UK offering and head into the US market.
