South West businesses boosted by £200m investment fund
Tech firms in the South West received a boost in Rishi Sunak's budget with the announcement of a £200m investment fund to support fast-growing businesses across the region.
The Chancellor announced £1.6bn in increases to regional financing programmes, including £200m to "provide a new fund for businesses in the South West of England". It is the first government fund to stretch across the South West and builds on the region's growing reputation as a breeding ground for innovative technology businesses, especially in areas such as climate science and renewable energy.
As reported by SWTD last week, the South West's investment fund will resemble the structure of the Northern Powerhouse Investment Fund (NPIF) and Midlands Engine Investment Fund (MEIF) and will include a mixture of debt and equity finance options for small businesses. Like those funds, it will be run by the state-owned British Business Bank (BBB) in collaboration with local partners.
In further positive news for the South West, an additional £150m was allocated in the budget to the BBB's Regional Angels Programme, which invests "alongside angel syndicates into high potential businesses across all the UK’s regions and nations".
Dan Pritchard, co-founder of Tech South West, said: “We welcome the new South West Investment Fund and on behalf of our members will work with the government to ensure that it is successfully set up and deployed to maximise this opportunity. It has to target our most promising tech companies across the whole region. Tech South West works for the whole region and we’ve very aware of the challenge of accessing investment at times. It’s not about who shouts the loudest, it’s about how we accelerate growth in the best and most sustainable way for the benefit of the region and the UK."
Commenting on the increased funding, BBB Chief Executive Catherine Lewis La Torre said: “We welcome the provision of this funding to deliver our expanded programme of activity, enabling us to make over £4.9bn of financial commitments and loans. This includes £1.6bn to provide investment funds for the Devolved Nations, and the North, Midlands, and South West of England, £150m to invest alongside business angels across the UK, and resources to provide 33,000 Start-Up Loans over the next three years.”
Peter Evans: Now is the time for a South West regional investment fund
