NPIF II helps ‘empower’ Northern businesses

An investment fund supporting small businesses has marked a milestone first year, with North East firms among the beneficiaries of more than £80 million in funding.

The Northern Powerhouse Investment Fund II (NPIF II), managed by British Business Bank, has delivered more than 200 investments across the region since launching in early 2023.

Designed to support start-ups and scaling companies with loans and equity finance, the £660 million fund aims to break down barriers to growth for businesses that may otherwise struggle to access investment.

Maven Capital Partners and NEL Fund Managers are delivering the fund across the North East, with businesses able to apply for finance ranging from £25,000 to £5 million.

The launch of NPIF II builds on the success of the original fund, which launched in 2017, and has now been extended to cover the entire North, including all areas of the North East.

Adam Kelly, managing director, co-head of funds at British Business Bank, said: “Our focus has always been towards helping smaller businesses achieve their ambitions by gaining transformational access to finance. 

“From fintechs to workplace wellbeing apps, the Northern Powerhouse Investment Fund II has done exactly that by empowering local business leaders and entrepreneurs to grow their organisations. 

“In its first year, over £80 million invested into the Northern economy is a fantastic feat, and we’re proud to have supported businesses at the forefront of innovation, or building the modern, green economy, and those led by underrepresented founders. 

“This is only the first year of NPIF II and there are still so many great businesses out there looking for investment.”

In the North East, fintech company Kani Payments, based in Newcastle, received multi-million-pound backing through NPIF II - Maven Equity Finance to support the growth of its platform, team and international expansion. 

Similarly, Stockton-based wellbeing platform OptiMe secured a five-figure investment from NPIF II - NEL Smaller Loans to enhance its workplace mental health services.

Sarah Newbould, senior manager at British Business Bank, added: “The North East is full of ambitious, driven entrepreneurs, and the Northern Powerhouse Investment Fund II exists to support them in taking their businesses to the next level. 

“Whether it’s cutting-edge tech companies like Kani Payments or innovative, female-led wellbeing businesses like OptiMe, we’re committed to backing the trailblazers who are shaping the future of the region.

“More than £80 million has already been invested across the North in NPIF II’s first year, and that early momentum shows just how much appetite there is for growth.

“It’s been especially rewarding to support businesses leading the way in innovation, sustainability, and inclusivity and there’s so much more to come.”

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