The Northern Powerhouse Investment Fund II (NPIF II) has reached a significant milestone, marking two years of operation with over 400 businesses supported and nearly £275 million in facilitated investment. Launched in 2024, the fund is designed to back firms that might otherwise struggle to secure investment, countering the 'computer says no' attitude of traditional lenders. Unlike its predecessor, NPIF II is also open to businesses in the North East, in addition to those in Yorkshire and the North West.
Key Achievements
The British Business Bank fund has released its latest figures, showing 449 deals and almost £275 million in investment. The fund offers loans from £25,000 to £2 million and equity investment up to £5 million. Its direct investment of £151.3 million has unlocked an additional £122.6 million from the private sector, with funding spread across the North and key economic sectors.
Regional Success Stories
In the North East, Simplified Operations, a female-led consultancy for SMEs, secured investment from NPIF II – NEL Smaller Loans to launch its Operations Academy. In the North West, Whitehaven-based maritime robotics startup ScrubMarine secured over £740,000 in a pre-seed funding round led by NPIF II – PXN Ventures Equity Finance, developing autonomous robotics for ship hull cleaning and inspection. In Yorkshire, Hull-based HR consultancy The HR Guru secured £100,000 from NPIF II – Mercia Debt Finance to develop its digital platform, Hey Guru, which provides a centralized, automatically updated employee handbook.
Strategic Impact
Mark Sterritt, senior investment director at the British Business Bank, commented: 'In just two years, it’s incredible to see just how much we’ve already achieved through NPIF II, unlocking almost £275m in investment for Northern businesses. We’re ensuring that businesses of all sizes can scale and grow, creating local opportunity, with a particular focus on breaking down traditional barriers to accessing financing. By targeting harder-to-reach areas and founders from diverse backgrounds, we’ve already made great progress in widening access and empowering ambitious entrepreneurs.'
Sterritt added: 'The launch of the UK’s Modern Industrial Strategy has provided us with a clear framework under which we can support high growth Northern businesses, ensuring our region can compete on a national scale. We’re helping to build a strong investment ecosystem, working across Innovation Clusters and Growth Corridors, all ensuring that Northern entrepreneurs can access the capital they need to drive sustainable, long-term growth.'
