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British Business Bank makes first investment through the Regional Angels Programme’s new co-investment strategy to Space Forge

Press release 14 May 2025

The British Business Bank today announces the first investment under its new co-investment strategy as part of its £285m Regional Angels Programme to Wales-based Space Forge, a company that utilises the space environment to manufacture advanced semiconductor materials for critical infrastructure, ensuring more powerful and resilient capabilities across telecommunications, aerospace, and quantum. Space Forge’s £22.6m series A round was led by NATO Innovation Fund.

This milestone £2m investment to Space Forge demonstrates the Regional Angels Programme's commitment to supporting early-stage companies across the UK, and provides additional funding needed to drive growth and innovation. The Programme typically commits £5m-£15m to partners who then invest capital from the British Business Bank alongside their own capital and from other investors. Since launch, the Programme has made 31 commitments totalling more than £280m to partners, who have invested £160m into more than 800 companies over five years on behalf of the British Business Bank with positive returns.

The Regional Angels Programme’s new co-investment strategy is expected to invest an average of £3m in follow-on funding to c.4-5 top-performing companies from within the Regional Angels Programme’s existing portfolio each year. The Programme typically invests alongside partners at the seed stage but has also invested in later stage rounds, including into Edinburgh based Current Health, alongside partners Par Equity. Current Health was acquired by Best Buy Inc, making a 3.6x return in a six month period for British Business Bank. The investment in Space Forge is the first of four direct investments made by the Programme.

Mark Barry, Senior Investment Director at British Business Bank, said: 

We are delighted to make this first investment under the new co-investment strategy as part of the Regional Angels Programme. The investment into Space Forge aligns with our overall programme goal to strengthen the UK's regional economy by supporting high-growth businesses, and to leverage the commercial potential from our existing portfolio. We first backed Space Forge through a partner back in 2021 and under Josh's leadership, the company is delivering on its mission to be the in-space manufacturer of choice.

Josh Western, CEO & Co-Founder, Space Forge, said: 

It's great to have this support from the Regional Angels Programme through its new co-investment strategy. We see it as a real vote of confidence in our company, as well as the Welsh region as a centre of excellence for engineering. We look forward to continuing working with the British Business Bank; it's incredibly valuable to have its support for an industry that is as nationally strategic as semiconductor production.

The Regional Angels Programme, launched in 2019 with the objective of addressing regional imbalances in access to early-stage equity finance, targets angel networks and other early-stage investors outside of London. This first investment under the Programme’s co-investment strategy marks a significant milestone in the Programme’s mission to foster entrepreneurial activity and stimulate economic growth across the UK’s Nations and regions.

Further Information

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Notes to editors

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 sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. 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 over £17.4bn 1 of finance to almost 64,000 2  smaller businesses.

As well as increasing the supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of finance options available to smaller businesses. The British Business Bank Finance Hub provides independent and impartial information to businesses about finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success.

The British Business Bank is also responsible for administering the government’s three Coronavirus loan schemes and its Future Fund, together responsible for delivering £80.4bn in finance to 1.67m businesses. These schemes are now closed to new applications.

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 Regional Angels Programme is operated by British Business Investments Ltd, a wholly owned commercial subsidiary of British Business Bank plc. British Business Investments Ltd is registered in England and Wales with company number 09091930, and registered office at Steel City House, West Street, Sheffield, S1 2GQ.

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

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