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Midlands Engine Investment Fund II marks £80 million investment in small businesses across the Midlands

Press release 21 October 2025

  • More than 180 businesses have been supported since February 2024
  • West Midlands’ music, film and production firms among those to receive funding
  • East Midlands’ medical technology spin-outs, scaling manufacturers and fast growing construction firms among those backed

The British Business Bank’s Midlands Engine Investment Fund II has now driven over £80m of investment into new and growing businesses across the region.

Launched in February 2024, the Midlands Engine Investment Fund II has invested more than £50m of direct investment and leveraged an additional £30m of private sector investment, with 180 smaller businesses receiving funding.

The Midlands Engine Investment Fund II is part of the £1.6bn suite of Nations and Regions Investment Funds launched by the British Business Bank, which aim to increase the supply and diversity of early-stage finance for UK smaller businesses.

Buoyed by the continuing recognition and growth of the region’s creative sector, the Midlands Engine Investment Fund II has supported a number of scaling firms set to put the West Midlands firmly on the entertainment map.  

Birmingham-based Threewise Entertainment, an independent TV production company, is using the £100,000 it secured to help diversify its licensing and acquire new characters, including the much-loved children’s TV character, Bagpuss.

Meanwhile, Staffordshire video production agency, Reels In Motion, led by Matt Hubbard, are using their £70,000 funding to rebrand, invest in equipment and make building improvements. It marks a new chapter for the firm, whose previous brand was used for 20 years.

From screen to sound, Warwickshire based music tuition service Totally RAD is growing the next generation of musical talent with support from the fund. As the UK’s largest private music tuition provider, with pupils taught by professional musicians, the business received £100,000 to help it reach more schools and expand its software platform to cater for adult learners.

Keira Shepperson, Senior Investment Director at the British Business Bank, said: 

The West Midlands creative sector has experienced significant growth for a number of years, but now - with high profile support from the likes of Stephen Knight and further investments from the BBC, recognition of the region as a creative hotspot is here to stay.

It is exciting to see ambitious firms from this sector secure investment and make their growth dreams a reality.

The Midlands Engine Investment Fund II is here to back firms that share that sense of ambition and entrepreneurial spirit. We look forward to working with more such forward thinking firms as they gear up for 2026.

Michael Ford, CEO & Creative Director of Threewise Entertainment said:

The growing recognition and support of the West Midlands as a creative hub is to be celebrated. I founded Threewise in Birmingham because of the high quality of talent and the potential it offered for growth. With the Midlands Engine Investment Fund II providing invaluable investment and support, we're playing our part in turning imagination into industry.

In the East Midlands, from manufacturing to life sciences; software, engineering, retail and construction – pioneering and innovative businesses have been able to scale and grow due to the fund’s investment.

The team from Forge Genetics (L-R) Chris Humphreys, Hannah Tapsell, Craig Woods, Paul Edwards and Lisa Thomas

University of Nottingham based Forge Genetics, a cutting edge spin-out firm, received £2m to develop a new gene editing tool to combat hereditary diseases and antibiotic resistance. In Lincolnshire, growing construction firm Sleaford Building Services secured £750,000 to support their expansion and drive cross sector growth, and Derbyshire based Shawpak, a leading manufacturer of medical packaging, received £500,000 to scale their premises and production facilities.

Keira Shepperson, Senior Investment Director at the British Business Bank, added:

The East Midlands has a strong track record in innovation, as shown by the firms the Fund has been able to invest in. From cutting edge medical technologies to evolving manufacturing and construction firms, the region is pushing through and bringing new ways of working to life. The Midlands Engine Investment Fund II is here to back that sense of ambition and entrepreneurial spirit. We look forward to continuing to support these firms and more as they gear up for 2026.

Barry Exton, Managing Director, Sleaford Building Services, said:

Our business has continued to grow and thrive thanks to support through the Midlands Engine Investment Fund II. Their backing has enabled us to expand our team, take on more complex projects, and further develop our business making it stronger than ever.

The Midlands Engine Investment Fund II offers a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m, and equity investment up to £5 million, and works with five accredited fund manager partners. The fund covers the whole of Midlands, including the West Midlands, East Midlands and South East Midlands.

British Business Bank driving impact across the UK 

Along with the Midlands Engine Investment Fund II, the Bank is expanding geographically focused interventions to support the UK’s Modern Industrial Strategy and unlock regional potential. In June 2025, the government committed £6.6bn to the Bank, increasing its total financial capacity to £25.6bn.

In July this year the Bank reached the landmark milestone of £2.5bn of lending under its Growth Guarantee Scheme. Over £200m of lending was delivered in the West Midlands.  

A key vehicle for this will be the targeted support that the Bank will provide to the 10 innovation clusters identified in the UK’s Modern Industrial Strategy, including the West Midlands. This support includes £100m additional investment across the UK into the Bank’s Nations and Regions Investment Funds, which includes the Midlands Engine Investment Fund II. 

Throughout 2024/25, 84% of the Bank’s newly supported businesses were outside the capital, which is expected to result in £4.7bn in additional GVA and support around 22,100 jobs across the rest of the UK.

Further Information

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Notes to editors

About the Midlands Engine Investment Fund II

  • Operated by the British Business Bank, the £400 million Midlands Engine Investment Fund II (MEIF II) provides a mix of debt and equity funding. MEIF II offers a range of commercial finance options with small loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support smaller businesses in the Midlands at all stages of their development.
  • The funds in which the MEIF II invests are open to businesses with material operations, or planning to open material operations, in the West and East and South East Midlands.
  • 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 Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

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