Midlands Engine Investment Fund II marks £80 million investment in small businesses across the East Midlands
Nottinghamshire businesses among those to benefit
- More than 180 businesses have been supported since February 2024
- East Midlands’ medical technology spin-outs, scaling manufacturers and fast growing construction firms among those backed
The British Business Bank’s Midlands Engine Investment Fund II has now driven over £80m of investment into new and growing businesses across the region.
Launched in February 2024, the Midlands Engine Investment Fund II has so far delivered more than £50m of direct investment and leveraged an additional £30m of private sector investment, with 180 small businesses receiving funding.
The Midlands Engine Investment Fund II is part of the £1.6bn suite of Nations and Regions Investment Funds launched by the British Business Bank, which aim to increase the supply and diversity of early-stage finance for UK smaller businesses.
From manufacturing to life sciences; software, engineering, retail and construction – pioneering and innovative businesses across the East Midlands have been able to scale and grow due to the fund’s investment.
University of Nottingham based Forge Genetics, a cutting edge spin-out firm, received £2m to develop a new gene editing tool to combat hereditary diseases and antibiotic resistance. In Lincolnshire, growing construction firm Sleaford Building Services secured £750,000 to support their expansion and drive cross sector growth, and Derbyshire based Shawpak, a leading manufacturer of medical packaging, received £500,000 to scale their premises and production facilities.
Keira Shepperson, Senior Investment Director at the British Business Bank, said: “The East Midlands has a strong track record in innovation, as shown by the firms the Fund has been able to invest in. From cutting edge medical technologies to evolving manufacturing and construction firms, the region is pushing through and bringing new ways of working to life. The Midlands Engine Investment Fund II is here to back that sense of ambition and entrepreneurial spirit. We look forward to continuing to support these firms and more as they gear up for 2026.”
Barry Exton, Managing Director, Sleaford Building Services, said: “Our business has continued to grow and thrive thanks to support through the Midlands Engine Investment Fund II. Their backing has enabled us to expand our team, take on more complex projects, and further develop our business making it stronger than ever.”
The Midlands Engine Investment Fund II offers a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m, and equity investment up to £5m. The fund covers the whole of Midlands, including the West Midlands, East Midlands and South East Midlands.
British Business Bank driving impact across the UK
Along with the Midlands Engine Investment Fund II, the Bank is expanding geographically focused interventions to support the UK’s Modern Industrial Strategy and unlock regional potential. In June 2025, the government committed £6.6bn to the Bank, increasing its total financial capacity to £25.6bn.
As part of this increased capacity, the Bank’s Regional Angels Programme, which saw record activity in 2024/25, has been expanded by £340m and will be combined with new support for diverse angel networks and innovation-led businesses.
Throughout 2024/25, 84% of the Bank’s newly supported businesses were outside the capital, which is expected to result in £4.7bn in additional GVA and support around 22,100 jobs across the rest of the UK.