British Business Bank invests in Space Forge through Regional Angels Programme
The British Business Bank today announces the first investment under its new co-investment strategy as part of its £285m Regional Angels Programme to Wales-based Space Forge, a company that utilises the space environment to manufacture advanced semiconductor materials for critical infrastructure, ensuring more powerful and resilient capabilities across telecommunications, aerospace, and quantum. Space Forge’s £22.6m series A round was led by NATO Innovation Fund.
This milestone £2m investment to Space Forge demonstrates the Regional Angels Programme’s commitment to supporting early-stage companies across the UK, and provides additional funding needed to drive growth and innovation. The Programme typically commits £5m-£15m to partners who then invest capital from the British Business Bank alongside their own capital and from other investors. Since launch, the Programme has made 31 commitments totalling more than £280m to partners, who have invested £160m into more than 800 companies over five years on behalf of the British Business Bank with positive returns.
The Regional Angels Programme’s new co-investment strategy is expected to invest an average of £3m in follow-on funding to c.4-5 top-performing companies from within the Regional Angels Programme’s existing portfolio each year. The Programme typically invests alongside partners at the seed stage but has also invested in later stage rounds, including into Edinburgh based Current Health, alongside partners Par Equity. Current Health was acquired by Best Buy Inc, making a 3.6x return in a six month period for British Business Bank. The investment in Space Forge is the first of four direct investments made by the Programme.
Mark Barry, senior investment director at British Business Bank, said: “We are delighted to make this first investment under the new co-investment strategy as part of the Regional Angels Programme. The investment into Space Forge aligns with our overall programme goal to strengthen the UK’s regional economy by supporting high-growth businesses, and to leverage the commercial potential from our existing portfolio. We first backed Space Forge through a partner back in 2021 and under Josh’s leadership, the company is delivering on its mission to be the in-space manufacturer of choice.”
Josh Western, CEO & co-founder, Space Forge, said: “It’s great to have this support from the Regional Angels Programme through its new co-investment strategy. We see it as a real vote of confidence in our company, as well as the Welsh region as a centre of excellence for engineering. We look forward to continuing working with the British Business Bank; it’s incredibly valuable to have its support for an industry that is as nationally strategic as semiconductor production.”
The Regional Angels Programme, launched in 2019 with the objective of addressing regional imbalances in access to early-stage equity finance, targets angel networks and other early-stage investors outside of London. This first investment under the Programme’s co-investment strategy marks a significant milestone in the Programme’s mission to foster entrepreneurial activity and stimulate economic growth across the UK’s Nations and regions.