Innovative businesses in North of England set to receive more than £50m from British Business Bank
Press release
The British Business Bank has allocated more than £57m to five Innovation Clusters across the North of England – more than half the total national allocation of £100m, aimed at supporting high growth businesses aligned with the Government’s Modern Industrial Strategy.
Delivered through the Northern Powerhouse Investment Fund II (NPIF II), each Cluster will unlock new equity investment for ambitious businesses, creating fresh opportunities for growth across the eight high-priority Industrial Strategy sectors and beyond.
The northern Innovation Clusters are set to receive £17.5m for Greater Manchester, £13.5m for West Yorkshire, £12m for the North East, £9m for Liverpool City Region and £5.5m for South Yorkshire. This funding will be delivered by the NPIF II equity fund managers - PXN Ventures, Mercia Ventures and Maven Capital Partners.
This targeted investment will accelerate the growth of innovation-led sectors identified in the Industrial Strategy as critical to the UK’s long-term competitiveness. Across the North, these sectors include clean energy, advanced manufacturing, digital and technologies, life sciences, and professional and business services. Alongside this, NPIF II will continue to support ambitious businesses across a wider range of sectors in the Northern economy.
The additional funding 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.
In the North East, MySalesCoach, a Newcastle-based technology 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. The investment will support the development of their technology platform and expand its sales and marketing activity.
In Yorkshire, Sheffield-based legal tech company FinLegal secured a £2m investment from NPIF II – Mercia Equity Finance to accelerate its international growth. The business is using the funding to expand into new markets, develop its platform and create 26 new jobs as it continues to scale.
In the North West, Liverpool City Region-based ecommerce solution business Made With Intent gained £2.4m in an investment round led by NPIF II – PXN Equity Finance, along with existing investors Mercuri and Haatch. The business is using the investment to expand further into Europe and the US, as well as making its product more powerful and user friendly.
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.
Operated by the British Business Bank, NPIF II is a £660m fund that provides loans and equity finance to Northern smaller businesses that might otherwise struggle to secure investment. It is helping to break down barriers in access to finance, supporting innovation and creating local opportunity for new and growing businesses. The Fund offers loans from £25k to £2m and equity investment up to £5m to help northern businesses start up, scale up and stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for Northern smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
Further Information
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Notes to editors
About Innovation Clusters
Innovation Clusters are geographical concentrations of innovative businesses, research institutions, and specialised suppliers, strengthening the UK’s regional innovation ecosystem. More information can be found Update to the Innovation Clusters Map - GOV.UK
Following the 2025 Spending Review, the Bank announced targeted £100m investment into the existing Nations and Regions Investment Funds and embedding dedicated Cluster Champions: Press release - 23 June, 2025 | British Business Bank
About the Northern Powerhouse Investment Fund II
Working alongside Combined Authorities, Growth Hubs and local intermediaries, the Northern Powerhouse Investment Fund II (NPIF II) offers a range of commercial finance options to support the North’s smaller businesses at all stages of their development.
The funds in which NPIF II invests are open to businesses with material operations, or planning to open material operations, across Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, Hull, East Riding of Yorkshire, North Yorkshire, South Yorkshire, West Yorkshire, Hartlepool and Stockton-on-Tees, South Teesside, Darlington, Durham, Northumberland, Tyneside and Sunderland.
Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the PRA or FCA.
Further information can be found here: Northern Powerhouse Investment Fund II | British Business Bank
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