Select audience

Choose the option that best describes your role.

Search British Business Bank
Popular Search placeholder

British Business Bank makes cornerstone investment into Northern Gritstone’s £20 million rolling close

Press release 23 April 2026

  • Northern Gritstone has announced the first £20 million investment into its one-year rolling close building on the company’s £362 million permanent capital
  • The funding supports Northern Gritstone’s ongoing ambition to create global life science and technology businesses, rooted in the North of England 
  • Investors include the British Business Bank, which has made a £10m cornerstone investment, and Andrew Law, CEO of hedge fund Caxton Associates

Northern Gritstone, the groundbreaking life sciences and deeptech venture capital firm, has announced its rolling close of £20 million of additional ordinary share commitments. The investment comes from existing Northern Gritstone shareholders, including the British Business Bank as cornerstone investor, increasing their respective commitments to the Company. The British Business Bank often makes cornerstone investments, mobilising further institutional capital by providing a signal of confidence in the fund.

This close builds on the firm’s April 2025 close of £362 million permanent capital, taking it to £382 million Over the course of 2026, Northern Gritstone is seeking to raise additional capital and the close marks the start of that programme. £10 million of the new funding commitment comes from the British Business Bank, bringing its total investment in Northern Gritstone to date to £40 million. Further investors include Andrew Law, CEO of hedge fund Caxton Associates.

Active since May 2022, Northern Gritstone is seizing the North of England's innovation opportunity, investing in and scaling at speed deeptech and life sciences startups that solve global problems, with the potential to scale worldwide. The company has already made 51 investments in some of the most exciting areas of development and future job creation in deeptech and life sciences, including semiconductor design and manufacturing; novel materials; secure computing; AI; healthtech; and gene therapies.

Many of its portfolio companies are spinouts from the Northern Arc universities of Leeds, Liverpool, Manchester, and Sheffield, which combined generate close to £800 million in research funding annually, 92% of which is world-leading or internationally excellent. The Northern Arc universities represent one of four globally competitive centres alongside Oxford, Cambridge and London, which together form the UK’s Technology Diamond.

The British Business Bank is the largest investor in UK venture and venture growth capital funds. This commitment highlights the Bank’s continued support for the Northern Growth Corridor and the UK’s thriving spinout ecosystem. Between 2022-2024 almost a quarter (24%) of university spinout deals were supported by the Bank, demonstrating its significant role in supporting the commercialisation of cutting-edge scientific research.

Northern Gritstone Chair, Lord Jim O’Neill, said:

We are very grateful for this further support from the British Business Bank and Andrew Law to continue developing global businesses in the North of England originating from our ‘Northern Arc’ university ecosystem. In this way, investors are contributing to future higher value-added activity and the North’s productivity

Northern Gritstone Chief Executive, Duncan Johnson, said:

This strong start to Northern Gritstone’s rolling close in today’s challenging fundraising environment shows the belief in innovation coming from the North of England. The region is now an integral part of the UK’s Technology Diamond, and we are proud to support the incredible talent of the North, helping to commercialise groundbreaking research into internationally commercial businesses.

Christine Hockley, Managing Director and Head of Commercial Equity Funds, British Business Bank, said:

The UK’s universities are a powerhouse of breakthrough research, and Northern Gritstone plays a vital role in transforming world class research from the North of England into high potential, IP rich businesses. Our increased commitment reflects the Bank’s ambition to scale life sciences and deeptech businesses, which are critical to the UK’s future growth.

Further Information

If you are a journalist and have a media enquiry, please contact [email protected].

Notes to editors

About Northern Gritstone

Northern Gritstone is an investment company dedicated to supporting ambitious science and technology businesses in the North of England. Its philosophy is ‘profit with purpose’ combining strong returns for investors with wider positive, societal and economic impact, including high-skilled job creation and regional growth. Chaired by Lord Jim O’Neill, the company has made 51 investments to date in some of the UK’s most exciting future businesses.

Northern Gritstone works alongside NG Innovation Services (NGIS), its high-performance growth experts for early-stage science and technology companies. The five functions within NGIS, which includes NG Studios, connect ambitious company founders with funding and expertise to quickly scale their businesses.

For more information, please go to northern-gritstone.com

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support £23bn 1  of finance to almost 64,000 2  smaller businesses. British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at British Business Bank.

The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc, its subsidiaries or any other party in respect of Northern Gritstone or its products or services.

Quick links

Latest news