The investments, delivered by the NPIF II fund managers, have assisted in driving sustainable economic growth by supporting innovation and local opportunities for new and growing businesses across the North.
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. The purpose of NPIF II is to break down barriers in access to finance by providing loans from £25k to £2m and equity investment up to £5m to start up, scale up, and stay ahead.
Maven Capital Partners (Maven) and NEL Fund Managers (NEL) are responsible for delivering NPIF II funds across the North East, enabling ambitious businesses to access smaller loans, debt, and equity finance options.
Building on the success of the first Northern Powerhouse Investment Fund, which launched in 2017, NPIF II was extended to encompass the entirety of the North of England by expanding its reach to cover the whole of the North East.
In its first year in operation, NPIF II has delivered investment to a range of smaller businesses, supporting them in achieving their growth objectives.
In the North East, NPIF II has played a pivotal role in fuelling the North East’s tech scene. Newcastle-based fintech specialist, Kani Payments (Kani), received multi-million-pound investment from NPIF II - Maven Equity Finance alongside Maven VCTs. This funding has been instrumental in propelling Kani into its next phase of growth, enabling the company to develop its highly scalable platform, grow its team, and expand internationally.
Elsewhere in the North East, Stockton-On-Tees-based OptiMe, a workplace mental health support platform, secured a five-figure investment from NPIF II - NEL Smaller Loans. By recognising the increasing demand for workplace mental health support, OptiMe sought funding to accelerate its growth, enhance its technology, and expand its team. In March, the company secured investment from NPIF II and is now on its way to deliver on its ambitious plans.
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 £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.”
Commenting on the one-year milestone, 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."