Two years on from its launch, the Northern Powerhouse Investment Fund II (NPIF II) is continuing to build momentum across Yorkshire and the Humber, 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.

Delivered by the Business Enterprise Fund (BEF) and Mercia across Yorkshire and the Humber, the investments 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.

For Leeds-based eco-friendly cleaning brand OceanSaver, a £1.9m investment from NPIF II – Mercia Equity Finance is helping the business to continue its expansion and get its products on to more supermarket shelves. Boasting household cleaning products that are free from plastic and harmful chemicals, OceanSaver has ambitious goals to become the UK’s biggest eco-cleaning brand. By using the funding to expand its range and target more retailers, the business expects to double the size of its team in the next three years and achieve a six-fold increase in turnover by 2030.

Over in Hull, NPIF II has helped drive innovation in the region’s professional services sector, a key area within the government’s Industrial Strategy. HR consultancy The HR Guru secured £100k from 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.

In York, The Puzzling World of Professor Kettlestring secured a five-figure loan from NPIF II – BEF Smaller Loans, enabling the team to turn a detailed business plan into a fully realised, multi-room optical illusion attraction. Founded by Matthew Tritton-Hughes, the funding facilitated the construction of multi-sensory illusion rooms, the creation of sideways and distorted spaces and the development of bespoke sets.

Yorkshire is full of ambitious, innovative businesses, and in just two years it's incredible to see how many of them we’ve supported through NPIF II. Whether its businesses leading the way in new digital technology platforms, or those who are helping to create a more sustainable planet, we’re committed to backing the trailblazers who are shaping the economic environment of the region. With a particular focus on breaking down traditional barriers to accessing finance, we’ve also made great progress in targeting funding in harder-to-reach areas and founders from diverse backgrounds.

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. The fund offers loans from £25k to £2m and equity investment up to £5m to help 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.