Prime Highlights
- UK launches the next £100 million phase of its venture capital programme to support early-stage businesses across the country.
- Up to 10 new venture capital funds will expand investment opportunities beyond London and drive regional growth.
Key Facts
- The British Business Bank’s Investor Pathways Capital Initiative will invest £400 million in total.
- Applications for the next funding cohort will open in Autumn 2026.
Background-
The UK government has announced a new £100 million investment to improve access to venture capital for early-stage businesses across the country. The funding forms the next phase of the British Business Bank’s Investor Pathways Capital Initiative, which aims to help innovative companies secure early funding and expand in every region of the UK.
The programme supports first-time venture capital fund managers from a wide range of backgrounds. These fund managers will invest in promising businesses, helping them grow, create jobs and strengthen local economies. The full initiative will provide £400 million in funding over several years.
The government said the latest investment reflects its plan to encourage business growth beyond London by improving access to finance in regions that have traditionally received lower levels of venture capital funding. The initiative is expected to support the creation of up to 10 new venture capital funds across the UK.
Chancellor John Healey said wealth creation remains a key priority and that stronger investment in businesses will help communities prosper. He added that the new funding will support firms that invest in people while giving local economies the resources needed to grow.
The latest announcement follows the British Business Bank’s earlier commitment of up to £90 million to 10 microfunds under the first Investor Pathways Capital cohort. Applications for the next round of funding are scheduled to open in Autumn 2026.
Economic Secretary to the Treasury Lucy Rigby recently met businesses, lenders and investors in Sheffield and Leeds to discuss improving access to finance for growing companies. The discussions focused on helping ambitious businesses secure investment at every stage of their development.
The government also highlighted wider reforms to its Growth Guarantee Scheme, which will increase lending capacity by £2 billion a year by 2028-29. The changes are expected to help around 12,000 more small businesses each year by extending loan terms, widening eligibility and improving access to finance for businesses looking to invest, expand and create jobs.
