British Business Bank has provided £5 million to the British Design Fund (BDF), an early-stage fund and angel network that backs UK product-focused businesses.
Managed by Sapphire Capital Partners LLP, the scheme supports start-ups that design and manufacture physical products.
It funds founders developing products in a range of sectors, including health, sustainability, and assistive technology.
The Bank provided the money through its Regional Angels Programme, which aims to address regional imbalances in access to early-stage equity finance, targets angel networks and other early-stage investors outside of London.
Chancellor Rachel Reeves, said:
“We want the UK to be the best place to start-up and scale-up. Half of new jobs in this country are created by scale-ups, and our tech, health and manufacturing sectors are second to none.
“This commitment by the British Business Bank will support even more entrepreneurs to take the leap and we have increased incentives at the Budget giving companies the talent and capital to grow. Our message is clear – if you invest here, Britain will back you.”
Mark Barry, senior investment director at British Business Bank, said:
“The UK has an abundance of worldclass talent in advanced engineering and manufacturing and we’re delighted to partner with BDF to invest in these early-stage opportunities right across the country.”
Damon Bonser, CEO of BDF Advisors, said:
“We welcome this commitment from the British Business Bank, which supports our continued efforts to back UK product innovation. We meet founders every day who are addressing fundamental problems in the world through innovative manufacturing and engineering technologies. This commitment enables the British Design Fund to continue its work with more founders and to help founders progress their ideas into viable early-stage businesses.”