The British Business Bank announced the proposed fund today (Monday, September 7), saying it would provide investments of between £5m and £15m to innovative companies across the North of England.
Henri Murison, chief executive of the Northern Powerhouse Partnership, welcomed the fund and said more backing and private investment were vital for fast-growing North East businesses.
Henri Murison, chief executive of the Northern Powerhouse Partnership, welcomed the new fund (Image: SARAH CALDECOTT)
The Northern scale-up fund would target ambitious businesses, including university spinouts and other high-growth firms, seeking money to expand.
The state-owned economic development bank said the fund would complement its existing Northern Powerhouse Investment Fund II and Regional Angels Programme, providing a larger source of investment for businesses that have moved beyond the early stages of growth.
It is expected to support companies in clean energy, technology, space and the creative industries—some of the North’s fastest-growing sectors.
Announcing the initiative, Chancellor John Healey said: “Today I can announce a new £150m allocation from the British Business Bank to lever in more capital behind the most innovative and fast-growing firms in the North of England.”
Chancellor John Healey has announced plans for a new £150m northern scale-up fund (Image: Betty Laura Zapata)
Mr Healey also announced the creation of a “Northern 500” group of “the North’s most ambitious mid-sized businesses”, to be led by regional mayors.
Leandros Kalisperas, chief investment officer at the British Business Bank, said the fund was intended to help address long-standing regional funding gaps.
He 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.
Leandros Kalisperas – Chief Investment Officer West Yorkshire Pension Fund. 28.03.23 (Image: West Yorkshire Pension Fund)
“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.”
Mr Murison said the fund would help growing businesses by bringing in more private investment.
He added: “The British Business Bank £150 million scale-up fund for the North is welcome and reflects the importance of supporting more fast-growing businesses, which is only possible by leveraging more private capital also prepared to take risk.
“The need for the same in the North East cannot be understated.”
The announcement comes as the British Business Bank expands regional programmes to improve access to finance and support growth across the UK.
