Second anniversary of NPIF II marked by delivery of £275m boost to northern businesses
Two years on from its launch, the Northern Powerhouse Investment Fund II (NPIF II) is continuing to build momentum across the North of England, having supported more than 400 ambitious businesses and facilitated almost £275m of investment.
Completed across 449 deals, the Fund is playing a vital role in boosting regional growth, while crowding in private sector co-investment. More than £151.3m in direct investment across the region has helped to unlock an additional £122.6m from the private sector, delivering capital that northern businesses may not have otherwise been able to access.
Over the last two years, the Fund has supported a diverse range of businesses through debt and equity investment, helping them to achieve their growth ambitions and bring innovative ideas to market.
The investments, delivered by NPIF II fund managers across the North of England, are continuing to drive sustainable economic growth. Aligning with the UK’s Modern Industrial Strategy, the Fund is ensuring high growth priority sectors across the North can contribute to UK-wide growth.
In the North West, NPIF II has played an important role in supporting the region’s sustainable business ecosystem. Whitehaven-based maritime robotics startup ScrubMarine secured over £740k in a pre-seed funding round led by fund manager, NPIF II – PXN Ventures Equity Finance. Founded by 21-year-old Rohith Devanathan, the business is using the funding to develop an autonomous system designed to clean and inspect ship hulls, improving efficiency while also reducing fuel consumption and environmental impact
Over in Yorkshire, NPIF II has helped drive innovation in the region’s professional services sector, a key area within the government’s Industrial Strategy. Hull‑based HR consultancy The HR Guru secured £100k from fund manager, NPIF II – Mercia Debt Finance to develop its new digital platform, Hey Guru. Founded in 2023 by HR professional Alison Lambert, the business will use the funding to accelerate software development and expand its consultancy services. The platform is designed to offer a centralised, automatically updated employee handbook that streamlines onboarding and ensures compliance with evolving legislation.
Following the extension of NPIF II across the North East, female‑led consultancy Simplified Operations secured investment from fund manager, NPIF II – NEL Smaller Loans to launch its new Operations Academy. Founded by Helen Butler, the company helps SMEs build scalable, self‑managing operations. The funding will support the development and rollout of a structured training platform designed to equip operations leaders with the skills and tools needed to drive performance and continued success.
Mark Sterritt, senior investment director at the British Business Bank, said: “In just two years, it’s incredible to see just how much we’ve already achieved through NPIF II, unlocking almost £275m in investment for Northern businesses. We’re ensuring that businesses of all sizes can scale and grow, creating local opportunity, with a particular focus on breaking down traditional barriers to accessing financing. By targeting harder-to-reach areas and founders from diverse backgrounds, we’ve already made great progress in widening access and empowering ambitious entrepreneurs.
“The launch of the UK’s Modern Industrial Strategy has provided us with a clear framework under which we can support high growth Northern businesses, ensuring our region can compete on a national scale. We’re helping to build a strong investment ecosystem, working across Innovation Clusters and Growth Corridors, all ensuring that Northern entrepreneurs can access the capital they need to drive sustainable, long-term growth.”
Operated by the British Business Bank, NPIF II is a £660m fund that provides loans and equity finance to Northern smaller businesses that might otherwise struggle to secure investment. It is helping to break down barriers in access to finance, supporting innovation and creating local opportunity for new and growing businesses. The Fund offers loans from £25k to £2m and equity investment up to £5m to help northern businesses start up, scale up and stay ahead.
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.