£660m NPIF2 attracts hundreds of queries from companies

More than 1,250 businesses have expressed their interest in accessing the new £660m Northern Powerhouse Investment Fund II (NPIF II), according to its appointed regional fund managers. This includes expressions of interest from over 500 businesses across Yorkshire and the Humber.

The fund, launched by the British Business Bank in March, aims to increase the supply and diversity of early-stage finance for small businesses looking to start up and scale up across the region.

Mercia and Business Enterprise Fund (BEF) will deliver the fund will operate across Hull, the East Riding, North, South and West Yorkshire. BEF, will provide businesses with smaller loans from £25,000 to £100,000. Mercia will provide debt finance options from £100,000 to £2 million and equity investments up to £5 million.

Since its official launch, intermediaries and potential investees recently attended a series of regional roadshow events across the North. Attendees gathered in Sheffield, the third event of the series, to learn further information about the fund, including how to apply and an explanation of finance options available in the region.

Lizzy Upton, senior investment manager at the British Business Bank, said: “These series of regional roadshows help us keep the momentum going, ensuring that local stakeholders are engaged to help businesses across the region access the Fund. Yorkshire and the Humber is teeming with small businesses looking to access finance to drive the next stage in their growth journey, and we’re excited to be playing a significant role in enabling those goals.”

Ryan Sylvester, advanced wellbeing accelerator programme manager at Sheffield Hallam University, said: “It is an exciting time for the startup support ecosystem in the North with the launch of NPIF II providing increased flexibility in funding options for early-stage companies seeking to build product and grow revenue. The Advanced Wellbeing Research Centre is looking forward to working with NPIF II and the wider investment community to support startups and spinouts with the funding and R&D support they need.

Glenn Fletcher, chief executive at Tribosonics, said: “Funding from the first Northern Powerhouse Investment Fund came at a pivotal time for our business on our growth journey, and we returned to the fund to raise a further round of investment to assist in building our team, further developing our products and IP platform, enhancing our facilities and increasing our capacity. If you’re a business leader looking to grow, I’d recommend contacting the fund managers, as they are clearly dedicated to helping the region thrive.”

The British Business Bank, along with all fund managers, will continue to host roadshow events in Liverpool, Tees Valley, Lancashire and Hull until July, with further dates soon to be announced for Northumberland, Middlesborough, Chester, York and Cumbria.

The Northern Powerhouse Investment Fund II is part of a series of six new Nations and Regions Investment Funds which have been launched by the British Business Bank, across the UK the government-owned business development bank. A total of £1.6 billion has been committed to the new funds to drive sustainable economic growth, which was first announced by the government in the 2021 Spending Review.

NPIF II is managed by a team of eight fund managers that have been appointed by the British Business Bank including Mercia, FW Capital, Praetura Ventures, Maven Capital Partners, NEL Fund Managers, GC Business Finance & River Capital, Business Enterprise Fund (BEF).

Applications for funding are made directly to the relevant fund managers who can be contacted via the NPIF website.