The Midlands Engine Investment Fund II aims to build on the success of the inaugural Midlands Engine Investment Fund, a £300m fund which has already supported 440 smaller businesses in the West Midlands since its launch in 2017.
The new fund will help hundreds more businesses to achieve their potential and further increase the supply and diversity of early-stage finance by providing options to firms that might otherwise be unable to secure investment. Funding is designed to help smaller businesses with activities including expansion, product or service innovation, new processes, skills development, and capital equipment.
Three fund managers have been appointed to manage the fund in the West Midlands. BCRS Business Loans will manage the smaller loans part of the fund (£25,000 to £100,000), Frontier Development Capital will be responsible for larger loans (£100,000 to £2 million) and Mercia Ventures will manage equity deals (up to £5 million).
Louis Taylor, Chief Executive Officer, British Business Bank said: “Small businesses are at the heart of The Midlands’ economy. Since launching in 2017, the first Midlands Engine Investment Fund has so far created more than 4,000 jobs across the region by backing 739 smaller businesses.
“The first Midlands Engine Investment Fund provided a blueprint for how we can support entrepreneurs and founders, whoever they are and wherever they are in the region, to access the funds and support they need. This new fund will allow us to continue supporting business owners across the Midlands, whether they’re at the start of their journey or are already running an established firm.
“Promoting growth by ensuring entrepreneurs can access the finance they need regardless of where and who they are is one of the Bank’s strategic objectives, and vital to unlocking the full potential of the UK’s smaller businesses.”
Exchequer Secretary to the Treasury, Gareth Davies MP said: “Small businesses are the engine of the economy, which is why having access to funding like this is vital to help them thrive and grow, creating jobs and spreading opportunity everywhere.
“As the birthplace of the Industrial Revolution, the Midlands propelled the UK into a new era of technological and economic growth and now the next generation of entrepreneurs will have the support they need to continue this success”.
Maeving Limited (Maeving), an innovator of electric motorcycles based in Coventry, secured a £1 million funding package from the Midlands Engine Investment Fund in 2022. The funding supported the business in its early stages of growth by providing working capital to assist with the launch of flagship products, and to invest in recruitment of marketing and engineering talent, enabling Maeving to focus on further product development.
Will Stirrup, Joint Chief Executive, Maeving, added: “‘The support we received from our fund manager team has been hugely instrumental in helping us achieve our goals. The investment from the Midlands Engine Investment Fund has helped us scale the business quickly, getting more people onto electric vehicles at a crucial moment in the fight against climate change.”
Following today’s launch, the British Business Bank will be holding a series of information roadshows aimed at people working with smaller businesses including enterprise agencies, advisors, accountants, law firms and more. The first of these sessions will be held in Lincoln on 11th March 2024, with additional sessions held in Leicester, Wolverhampton and Coventry, with further locations planned for April and May 2024.
To find out more and apply for funding, visit: www.midlandsengineinvestmentfund.co.uk
