The Midlands Engine Investment Fund II has committed over £17m in the Midlands in its first nine months, leveraging a further £10m from the private sector to help the region’s small and medium-sized businesses to start up, scale up or stay ahead.
A total of 70 businesses have received support through the Midlands Engine Investment Fund II since its launch in February 2024. The £400m Midlands Engine Investment Fund II covers the whole of the Midlands and provides debt finance from £25,000 to £2m and equity investment up to £5m to help small and medium sized businesses.
Five dedicated fund managers – First Enterprise – Enterprise Loans, BCRS Business Loans, Mercia Ventures, Frontier Development Capital (FDC), and Maven Capital Partners – manage separate parts of the £400m fund.
High street knitting and crafting retailer Knit Nottingham, and specialist tapes and adhesives manufacturer Advance Tapes, based in Leicestershire, are among those who have been supported by the fund.
Jody Tableporter, Director UK & Regional Funds, British Business Bank, said: “This funding milestone of £17m to 70 businesses, achieved in only nine months, indicates that Midlands businesses are ready to take on capital to help them achieve their ambitious growth plans.
“This demand from businesses across very different sectors, from manufacturing and technology to retail, logistics and renewable energy, showing the incredible diversity of the business base we have here in the Midlands.
“The Midlands Engine Investment Fund has also acted as a catalyst for private sector investment – helping to secure a further £10m, bringing the total investment into Midlands businesses to £27m. It is clear that this is just the beginning for the fund and the ambitious firms that access it.”
University of Nottingham spin-out Neupulse secured £500,000 in funding from the Midlands Engine Investment Fund II earlier this year, through appointed fund manager Mercia Ventures.
Neupulse has developed a Tourette’s therapy wristband, an innovative, non-invasive and non-medical treatment which has proved highly effective in trials. The funding is enabling Neupulse to finalise product trials and prepare it for market launch in the coming months.
Paul Cable, CEO of Neupulse, said: “The funding from Midlands Engine Investment Fund II has allowed us to take one step further towards our mission to roll out our device and give new hope to people with Tourette’s.
“Working with our fund manager partner over the past few months, they’ve supported us with expertise in product development and paths to new markets and helped us to deploy the funding effectively with great results.”
Jody Tableporter added: “Neupulse is an exceptional business that has secured funding to bring its vision and purpose to life. It is just one example of the incredible drive we’ve seen from entrepreneurs across the Midlands – and I look forward to seeing how we can support even more of them in the months to come.”
