More than 200 businesses across the North have tapped into a new investment fund in its first, new figures have revealed.
In its first year since launching, the Northern Powerhouse Investment Fund II (NPIF II) has completed the significant number of investments into small businesses, totalling more than £80m.
The investments have been delivered by the NPIF II fund managers – Praetura, FW Capital, River Capital, Maven Capital Partners and NEL Fund Managers – across the North West and North East, helping ambitious businesses to access small loans, debt, and equity finance options.
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Operated by the British Business Bank, NPIF II is a £660m fund that provides loans and equity finance options for Northern smaller businesses that might otherwise not receive investment.
It builds on the success of the first Northern Powerhouse Investment Fund which was launched in 2017, having been extended to include the whole of the North by expanding its reach to cover the North East.
NPIF II provides loans from £25,000 to £2m and equity investment up to £5m to help businesses start up, scale up, and stay ahead, and its first year of operation has seen a range of businesses tap into financial support, as well as business advice through its well-established support network.
In the North East, a number of growing tech companies have tapped into funding, including Newcastle fintech firm, Kani Payments, which received multimillion-pound investment from NPIF II - Maven Equity Finance alongside Maven VCTs. The funding has helped to power Kani into its next growth phase of growth, enabling it to ramp up work on its platform, grow its team, and expand internationally.
Meanwhile in Stockton-On-Tees, workplace mental health support platform OptiMe, secured a five-figure investment from NPIF II - NEL Smaller Loans to help it accelerate growth, boost its technology, and expand its team.
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Sarah Newbould, senior manager at the British Business Bank, said: “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 £80m 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.”
In Yorkshire, veterinary practice Claro Hill Vet received a £90,000 loan from NPIF II – BEF Smaller Loans which has helped it to safeguard seven existing roles and create four new jobs. Launched by Laura Keyser in 2024, the funding also provided stability to the practice, which gave it the security to successfully reach its target of £500,000 in turnover in its first year.
In Leeds, 75Media secured a seven-figure investment from NPIF II - Mercia Equity Finance to accelerate the development of its AI-driven booking platform.
Meanwhile in the North West, companies which have received help include Manchester-based café, Black Milk, which secured funding from NPIF II - GC Business Finance and River Capital Smaller Loans to support its development into a national food brand. It was originally launched as a cereal café, but now supplies spreads and granolas to major retailers including Selfridges, Co-op, and Amazon, after funding enabled it to scale production.
Over in Merseyside, Knowsley’s Central Group secured £700,000 from NPIF II - FW Capital Debt Finance to accelerate innovation and create eight new jobs. The funding is driving its collaboration with the University of Liverpool and Liverpool John Moores University on a Knowledge Transfer Project, focused on AI-powered diagnostics and maintenance. With NPIF II support, Central Group is advancing next-gen technology to enhance performance and reliability in industrial drive systems.
The Padel Club also raised £1.5m in funding from NPIF II - Praetura Equity Finance in one of the first deals in the North West, a deal which is powering its growth plans through the opening of its new site in TraffordCity.
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Sue Barnard, senior investment manager at the British Business Bank, said: “With thousands of new businesses launching in the North in 2024, the region is full of ambitious and driven entrepreneurs and NPIF II is helping them to take their businesses to the next level. From a thriving café like Black Milk in Manchester, to Knowsley-based electromechanical specialist Central Group, and The Padel Club in Cheshire bringing an up-and-coming sport to the region, we’re backing businesses with big ideas and strong local roots.”
Adam Kelly, managing director, co-head of funds at the 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 £80m 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.”