The British Business Bank has committed £5 million to the British Design Fund in a move aimed at strengthening early-stage investment in product-focused startups across the UK.
The commitment, made through the bank’s Regional Angels Programme, is intended to widen access to equity finance for emerging businesses outside London.
Managed by Sapphire Capital Partners, the British Design Fund backs founders developing and manufacturing physical products across sectors including health, sustainability and assistive technology.
The Regional Angels Programme was launched in 2019 to counter long-standing geographic imbalances in early-stage investment. The new funding for the British Design Fund reinforces that aim by supporting startups from the South West to Scotland.
SUPPORT FOR EARLY-STAGE FOUNDERS
Chancellor Rachel Reeves said the commitment would help founders scale their businesses in a climate where high-growth firms play a central role in job creation.
She 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 the 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.”
EXPANDING CAPITAL ACCESS
Damon Bonser (pictured), chief executive of BDF Advisors, welcomed the funding, noting the breadth of product innovation emerging from early-stage founders. He 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.”
Vasiliki Carson, partner at Sapphire Capital Partners, said the investment would help ease disparities in access to finance. She said: “We are pleased to be working alongside the British Design Fund and the British Business Bank to support early-stage product businesses.
“This commitment will contribute to addressing regional disparities in access to early-stage capital.”
The new backing represents a further step in the British Business Bank’s efforts to expand equity funding routes for innovative firms at the earliest stages of development, particularly in regions that have historically been underserved by private capital.
