Five Northern ‘innovation clusters’ are set to receive more than £57m from the British Business Bank in a fresh push to help high-growth businesses scale.
The North will receive more than half of the £100m allocated nationally through the initiative, which is said to align with the Government’s Modern Industrial Strategy.
Greater Manchester will receive £17.5m, followed by £13.5m for West Yorkshire, £12m for the North East, £9m for Liverpool City Region and £5.5m for South Yorkshire.
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The funding will target the growth of “innovation-led” sectors including clean energy, advanced manufacturing, digital and technologies, life sciences, and professional and business services.
The targeted funding will be delivered through the Northern Powerhouse Investment Fund II (NPIF II) and its equity fund managers PXN Ventures, Mercia Ventures and Maven Capital Partners.
Adam Kelly, Managing Director of Debt & 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.”
The funding boost will build on the existing work of NPIF II, which recently celebrated its second anniversary having facilitated almost £275m into over 400 businesses across the region.
Some of those businesses include MySalesCoach, based in Newcastle, after the company secured a £1m investment from NPIF II – Maven Equity Finance, alongside £500k from existing investors Northstar Ventures and Creative UK’s North East Fund.
Over in Yorkshire, Sheffield-based legal tech company FinLegal secured a £2m investment from NPIF II – Mercia Equity Finance to accelerate its international growth, while ecommerce firm Made With Intent from the Liverpool City Region secured £2.4m in an investment round led by NPIF II – PXN Equity Finance, along with existing investors Mercuri and Haatch to expand further into Europe and the US.
