The Northern Powerhouse Investment Fund II (NPIF II) said it has directly invested £115 million into over 300 small businesses across the North of England alongside an additional £68 million of private sector co-investment, taking its total delivery to more than £180 million.
Since its launch, NPIF II has completed over 315 deals to date.
Operated by the British Business Bank, NPIF II is a £660 million fund that provides loans and equity finance options for Northern smaller businesses that might otherwise not receive investment.
The purpose of NPIF II is to break down barriers in access to finance by providing loans from £25,000 to £2 million and equity investment up to £5 million to start up, scale up, and stay ahead.
In the North West of England, investment from NPIF II – River Capital & GC Business Finance Smaller Loans enabled the director and founder of Moxie Financials, Sian How, to expand its team with essential working capital.
The accountancy and tax specialist firm based in Preston will create four new roles, which will help Sian free up time to focus on business development and client acquisition.
Moving beyond the start-up phase, Moxie Financials is looking to target the legal sector, and will use the funding to help boost its marketing capabilities.
In Sheffield, leading independent bridge engineering specialist EKSPAN secured £1.4 million in debt funding from NPIF II – Mercia Debt Finance to support its further growth.
The company was established over 30 years ago, but for much of that time operated as part of larger corporates, most recently the USL Group.
It has helped deliver some of the UK’s most high-profile bridge infrastructure projects and with the funding, has helped expand its capabilities even further with the aim to increase turnover by 50% in the next three years.
In the North East, Magnitude Biosciences, a specialist contract research organisation offering in vivo discovery treatments for age-related conditions and other diseases, was one of the businesses to secure investment.
Based in County Durham, and led by Dr Fozia Saleem, it received £700,000 in a funding round led by NPIF II – Maven Equity Finance to scale up its high-throughput screening platform, which will be able to screen thousands of compounds a week.
The business is on the forefront of drug discovery and, based in NETPark, is a key player in the North East’s growing hub for digital and life science innovation.
Adam Kelly, co-managing director of Funds at the British Business Bank, said: “The Northern Powerhouse Investment Fund II plays a vital role in increasing the supply of funding available to small businesses in the North of England.
“Whether it’s deep in the Northumberland countryside, or the heart of a vibrant city like Leeds, NPIF II is delivering early-stage finance to businesses operating across a host of sectors.
“With over £180m directly invested so far, over 300 businesses will be feeling the direct benefits of what access to finance can help achieve. This milestone is a sign of more to come and there’s no doubt we expect a greater number of entrepreneurs to get engaged and access the funds they need to take their business to the next level.”