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Back to News Ken Cooper

2nd August 2022

Midlands Engine Investment Fund and Northern Powerhouse Investment Fund support over 30% of regional spinouts

  • New report by the British Business Bank, UK Research & Innovation and Innovate UK reveals how public investment is key to innovation-led businesses
  • 36% and 31% of businesses in the NPIF and MEIF equity portfolios were either ‘research council spinouts’ or had received R&D project funding

 A new joint research report titled ‘Backing Innovation-led Businesses: the role of public investment’ reveals how the programmes delivered by the British Business Bank, UK Research & Innovation and Innovate UK play a fundamental role in supporting the success of innovation-led businesses.

The report acts as a timely reminder of the importance of securing appropriate funding to help launch companies and initiatives that have the potential to drive the UK forward, whether they emerge from SMEs, universities, or assorted institutes.

Evidence shows that a high proportion of businesses receiving both debt and equity finance from the Northern Powerhouse Investment Fund (NPIF) and Midlands Engine Investment Fund (MEIF) are using it for innovation purposes. 36% and 31% of businesses in the NPIF and MEIF equity portfolios respectively were either ‘research council spinouts’ or had received funding for R&D projects from Innovate UK.

The MEIF equity portfolio in particular had the strongest links with spinouts emerging from UK institutions, with 13% of the portfolio being ‘research council spinouts’.

6Bit and Aceleron are just two of many Midlands-based businesses to have been supported through R&D project funding and that have secured investment from the MEIF.

EdTech company 6Bit received £800,000 from the MEIF Proof of Concept and Early Stage Fund to expand its team and increase its marketing and sales activities. Aceleron, a pioneer in sustainable battery technology, has raised a total of £5.4m in funding from the MEIF to enhance its products and continue to build relationships with manufacturers and major corporations.

Ken Cooper, Managing Director - Venture Solutions at the British Business Bank said:

“The BBB’s regional initiatives are focused on unlocking potential and enabling growth across the UK. The findings from this latest report show that innovation and funding go hand in hand, that our funds are finding innovative companies to support from across the UK and, as a result, are having a measurable impact at a regional level.”

Jon Corbett, Chair of the Midlands Engine Investment Fund’s Strategic Oversight Board, said:

“It is encouraging to see tangible proof of the impact that the MEIF has had across the region since its launch in 2017.

“The fund will continue to play an important role in the Midlands’ development as a hotbed of innovation and we remain committed to building on its progress, sustaining strong levels of support for the region’s SMEs.”

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