Small and medium-sized firms in Bath with growth potential can apply to a new £200m fund aimed at boosting innovation and prosperity across the South West.
Launched by the British Business Bank yesterday, the South West Investment Fund (SWIF) will increase the supply and diversity of early-stage finance for new and growing smaller firms.
These can range from expansion to product or service innovation, as well as new processes, skills or capital equipment.
The fund will offer a range of commercial finance options, with loans from £25,000 to £2m and equity investment up to £5m.
It will work alongside the region’s combined authorities, local enterprise partnerships (LEPs), and growth hubs, as well as intermediaries such as accountants, fund managers and banks.
SWIF is the first in a series of six new nations and regions investment funds being launched by the British Business Bank, the government-owned business development bank.
British Business Bank chief executive Louis Taylor described the launch of the fund as an important milestone in the bank’s mission to support business growth across the UK.
“By identifying and addressing funding gaps in the South West, we aim to empower local businesses and unlock their true potential,” she said.
“This initiative will play a crucial role in catalysing economic growth, creating jobs, and fostering innovation in the region.”
Chief Secretary to the Treasury John Glen, who attended yesterday’s launch at Bristol’s M Shed museum, pictured, added: “The South West is home to some of the most creative, innovative and exciting businesses this country has to offer.
“This fund will deliver vital investment to nourish that potential, building on over £300m of levelling up funding to grow the local economy and create well-paid jobs across the region.”
SWIF’s launch has been welcomed by regional business leaders.
Phil Smith, managing director of Business West – the region’s largest business group and the organisation behind Bath Chamber of Commerce, said: “Small businesses across the South West tell us there is a real need for more supply and diversity of early-stage finance.
“This new fund will be welcomed because it breaks down barriers and creates more opportunities for growth and innovation.”
Katherine Bennett CBE, who chairs the Western Gateway Partnership – the pan-regional partnership that stretches from Swindon to Swansea – said: “We believe that by working together we have the potential to become the UK’s green energy powerhouse – creating solutions to ensure we can reach net zero and take advantage of the economic opportunities that will come from the green transition.
“Access to early finance will be crucial for this and I look forward to continuing our work with the Great South West partnership, British Business Bank and other partners to ensure the region’s businesses have the support to grow and prosper."
One business that has already benefitted from a British Business Bank programme is Bristol sustainable clothing business Collective Designs UK.
Founder Stevie Mitchell, pictured above, said: “Growing a business and being competitive as a small business can be difficult and without the funding we wouldn’t be where we are today.
“It’s been really valuable and I’m really thankful for all the support.”
SWIF will be managed by a team of four fund managers that have been appointed by the British Business Bank including SWIG Finance, FW Capital, Maven and the FSE Group.
SWIG Finance will manage the smaller loans part of the fund, from £25,000 to £100,000, for the whole South West. FW Capital and Maven will manage the debt (£100,000 to £2m) and equity (up to £5m) funds respectively for the north of the region. The FSE Group will manage both debt and equity for the south of the region.
Pictured at the South West Investment Fund launch, from left: Melanie Goward, partner, Maven Capital Partners; John Peters, managing director, SWIG Finance; Jody Tableporter, director, venture solutions, British Business Bank; Ralph Singleton, head of funds, The FSE Group; Julie Silvester, managing director, fund management, The FSE Group; Ken Cooper, managing director, venture solutions, British Business Bank; and David Goodall, fund manager, FW Capital
