£210 million fund aims to fuel South East growth

A new £210 million investment fund has launched to help smaller businesses across the South East access finance and unlock growth.

The British Business Bank’s South East Investment Fund will provide loans ranging from £25,000 to £2 million alongside equity investments of up to £5 million.

Covering Buckinghamshire, Oxfordshire, Berkshire, Hampshire and the Isle of Wight, Sussex, Surrey and Kent, the fund is designed to support small and medium-sized businesses looking to start, scale and grow.

It aims to stimulate innovation, job creation and economic growth by improving access to finance across the region.

The fund has already completed its first investment, providing a £250,000 loan to Basingstoke technology company Process Vision to support its next phase of commercial growth and international expansion.

The South East is home to 17 per cent of the UK’s university spinout businesses, behind only London, but received five per cent of the country’s total equity investment by value last year.

Bosses say the new fund will help bridge the gap between academic innovation and commercial deployment by providing businesses with additional routes to finance.

Debt finance will be managed by The FSE Group, while Maven Capital Partners will oversee equity investment.

David Hourican, incoming interim chief executive of the British Business Bank, said: “Today’s launch of The South East England Investment Fund will help to stimulate economic growth throughout the region. 

“The South East of England is home to some of the UK’s most innovative technological and scientific businesses and this fund will ensure that business have local access to the finance they need to grow, scale and expand.”

Alongside the forthcoming East of England Investment Fund, the launch means the British Business Bank will provide targeted finance across every UK nation and region outside London.

Business Secretary Jonathan Reynolds added: “Small businesses are the bedrock of our economy and a vital part of any high street, whether it’s a tech startup in Surrey or a creative agency in Margate. 

“Making sure that smaller businesses have the backing they need to thrive is a crucial part of creating good growth in every postcode.

“We are determined not to let access to investment be a barrier to success for businesses in the South East. 

“The launch of this fund will help to ensure that small businesses across the region can grow to match their ambitions, whether that is bringing in new staff, moving into a new base or scaling into an international company.”

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