£57 million funding backs Northern innovation

More than £57 million of new investment is set to help unlock the “momentum and potential” of innovative businesses across the North of England.

The British Business Bank has allocated funding to five Innovation Clusters, representing more than half of a £100 million national pot aligned with the Government’s Modern Industrial Strategy.

Greater Manchester will receive £17.5 million, followed by £13.5 million for West Yorkshire, £12 million for the North East, £9 million for Liverpool City Region and £5.5 million for South Yorkshire.

The investment will be delivered through Northern Powerhouse Investment Fund II (NPIF II) equity fund managers PXN Ventures, Mercia Ventures and Maven Capital Partners.

It will target innovation-led sectors including clean energy, advanced manufacturing, digital and technologies, life sciences, and professional and business services.

The additional funding builds on NPIF II’s existing activity, which has facilitated almost £275 million into more than 400 businesses since its launch.

Recent investments include £1 million for Newcastle-based technology company MySalesCoach through NPIF II – Maven Equity Finance.

Alongside £500,000 from existing investors Northstar Ventures and Creative UK’s North East Fund, the backing will support development of MySalesCoach’s technology platform and expansion of its sales and marketing activity.

Adam Kelly, managing director of debt and 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.

“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.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.