North West businesses take slice of £80m funding

The Northern Powerhouse Investment Fund II (NPIF II) has completed more than 200 small business investments totalling over £80m in its first year.

Fund bosses say the investments, across the North of England, have helped drive “sustainable economic growth” by supporting innovation and local opportunities for new and growing businesses.

Praetura, FW Capital, River Capital and GC Business Finance are responsible for delivering NPIF II funds across the North West, enabling businesses to access small loans, debt, and equity finance options.

Operated by the British Business Bank, NPIF II is a £660m fund that provides loans and equity finance options for smaller businesses in the North that might otherwise not receive investment.

The purpose of NPIF II is to break down barriers in access to finance by providing loans from £25,000 to £2m and equity investment up to £5m to start up, scale up, and stay ahead.

Building on from the success of the first Northern Powerhouse Investment Fund which launched in 2017, NPIF II was extended to encompass the whole of the North.

In its first year in operation, NPIF II has delivered investment to a range of smaller businesses, supporting them in achieving their growth objectives.

Sue Barnard, senior investment manager at the British Business Bank, said: “With thousands of new businesses launching in the North in 2024, the region is full of ambitious and driven entrepreneurs and NPIF II is helping them to take their businesses to the next level.

“More than £80m has already been invested across the North in NPIF II’s first year, and that early momentum shows just how much appetite there is for growth. It’s been especially rewarding to support businesses leading the way in innovation, sustainability, and inclusivity and there’s so much more to come.”

Adam Kelly, managing director, co-head of funds at the British Business Bank, added: “Our focus has always been towards helping smaller businesses achieve their ambitions by gaining transformational access to finance.

“In its first year, over £80m invested into the Northern economy is a fantastic feat, and we’re proud to have supported North West-based businesses at the forefront of innovation, or building the modern, green economy, and those led by underrepresented founders.

“This is only the first year of NPIF II and there are still so many great businesses out there looking for investment.”