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.
Business Enterprise Fund (BEF) and Mercia Asset Management (Mercia) are responsible for delivering NPIF II funds across Yorkshire and The Humber, enabling ambitious businesses to access small loans, debt, and equity finance options.
Building on from 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.
Claro Hill Vets in Harrogate secured a £90,000 loan from NPIF II - BEF Smaller Loans, providing crucial working capital to safeguard seven jobs and create four new roles. Launched by Laura Keyser in 2024, the funding gave the practice the stability to grow confidently, enabling it to hit its £500,000 first-year turnover target and establish a strong foundation for long-term success as an independent veterinary provider.
In Skipton, Thornton Park Farm secured £100,000 from NPIF II - Mercia Debt Finance to diversify its operations with the development of five luxury holiday pods. The funding supported the Dunnett family as they revived the land after a four-year farming pause, creating new revenue streams and keeping two generations within the business. NPIF II has been key to transforming the farm into a sustainable, family-run rural enterprise.
Leeds-based 75Media secured a seven-figure investment from NPIF II - Mercia Equity Finance to accelerate the development of its AI-driven booking platform, making outdoor advertising more accessible to all brands. Since launching in 2020, the business has grown from 140 sites to become the UK’s second-largest provider of large format billboards. Now, with backing from NPIF II, 75Media plan to capitalise on a strong year end in 2024 where it saw revenue soar by 454% and its headcount double.
Lizzy Upton, senior investment manager at the British Business Bank, said: “There were thousands of businesses that set up shop in Yorkshire and the Humber last year, proving that entrepreneurial spirit within the region is booming. From Claro Hill Vets creating jobs in the region, to Thornton Park Farm diversifying its income stream, and 75Media revolutionising roadside advertising, we’re supporting innovative businesses with strong local roots.
“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 an independent vet to glamping pods and digital marketing initiatives, 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 Yorkshire 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."
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for Northern smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.