The British Business Bank’s South West Investment Fund has channelled more than £150m into upwards of 280 new and expanding businesses across the region over its first three years.
Since its launch in July 2023, the fund has directly allocated £75m to 283 South West firms. This direct support attracted an additional £82m in private sector co-investment, bringing the combined financial backing to £157m.
Covering Cornwall and the Isles of Scilly, Devon, Somerset, Bristol, Dorset, Wiltshire and Gloucestershire, the initiative deploys capital via appointed fund managers SWIG Finance, FW Capital, The FSE Group and Maven Capital Partners.
Alongside the main deployment, the state-owned development bank is introducing a new £8.5m innovation cluster in the West of England. The targeted pool aims to stimulate further equity funding for companies operating within the UK government’s eight priority Industrial Strategy sectors.
In March 2026, 40 Bristol-based businesses sought £200 million investment at the Bristol investor showcase. Now, businesses securing capital under the new scheme include female-founded biotech Mykor, cleantech firm Luthmore, period and bladder care brand Grace & Green, sports-tech platform YesRef, chartered accountants Purple Lime, luxury bed manufacturers The Cotswold Bed Company, aerospace fabrics maker Needles and Pins Aerospace, online tutoring brand Third Space Learning, and robotic additive manufacturing specialist Q5D Technologies.
Further recipients include waterfront brunch bar Signature Strawberries, methane monitoring cleantech QLM Technology, film production company Bosena, low-carbon fencing and landscaping business Circular11, liquid-based medicines developer Green Park Pharma, carbon-negative rum distillery Two Drifters, and agritech business Horizon Agri.
Keira Shepperson, senior director at the British Business Bank, said: “In just three years the South West Investment Fund has facilitated more than £150m into over 280 businesses, demonstrating the strength of entrepreneurial ambition in the region and the appetite among private investors to support it. By connecting capital with opportunity we continue to make markets work better for smaller businesses in the South West.
“As we enter the fund’s fourth year, we want to build on that progress by backing more promising businesses, including those operating in the Industrial Strategy sectors and by reaching talented entrepreneurs who continue to face barriers when seeking finance, including female founders and other under-represented groups. This will help more South West businesses start, scale and remain in the UK, creating jobs and prosperity in the communities where they are based.”
The £200m South West Investment Fund was established to increase the availability and variety of finance accessible to smaller regional firms. It offers commercial funding options spanning loans from £25,000 to £2m, as well as equity investments reaching £5m.
This milestone comes following wider regional deployments managed by the British Business Bank. Official announcements from the bank confirm that the South West initiative forms part of a broader £1.6bn commitment across its Nations and Regions Investment Funds, established to address structural capital deficits outside London and the South East. Further details on these regional initiatives can be viewed via the official British Business Bank Nations and Regions Investment Funds portal.
Image source: British Business Bank
