High-growth businesses across the West of England are set to benefit from an additional £8.5 million investment from the British Business Bank, designed to unlock new funding opportunities and drive innovation across some of the UK's most strategically important sectors.
The funding, delivered through the South West Investment Fund, will support ambitious businesses across Bristol, Bath and North East Somerset, and South Gloucestershire, helping firms scale faster and bring innovative products and services to market.
The investment is aimed at businesses operating within the Government's Modern Industrial Strategy, which identifies sectors critical to the UK's future economic growth and competitiveness, including clean energy, advanced manufacturing, digital technologies, life sciences, and professional and business services.
The £8.5 million allocation will be delivered by Maven Capital Partners, the equity fund manager for the South West Investment Fund, and forms part of the British Business Bank's wider strategy to strengthen regional economies through targeted investment.
The funding will be available not only to companies operating within the Industrial Strategy's priority sectors but also to other eligible high-growth businesses with strong development potential.
The latest announcement builds on the success of the South West Investment Fund, which recently marked its third anniversary. Since its launch, the £200 million fund has facilitated £157 million of investment into 283 businesses across the South West, including £82 million of private sector capital.
Recent investments highlight the type of businesses expected to benefit from the additional funding.
In Bristol, biotechnology company Mykor secured investment as part of a £4 million funding round to support the development of bio-based insulation and sustainable building systems. The female-founded business is working on alternatives to traditional construction materials with the aim of reducing the environmental impact of the built environment.
Meanwhile, ReadyGo, a medical diagnostics company based in Bath, received a £500,000 equity investment through the Fund in March 2025. The company develops diagnostic technologies designed to detect infectious diseases both within and beyond traditional laboratory environments, with funding helping to accelerate commercial growth and partnership opportunities.
Adam Kelly, Managing Director of Debt & Regional Funds at the British Business Bank, said:
“The South West is home to some of the UK’s most exciting businesses, yet many have historically struggled to access the capital needed to scale. This Innovation Cluster will help to bridge this gap, building on the success we’ve already achieved through the South West Investment Fund to target the high-growth industries that won’t just be important for regional growth, but also national growth.
“The Government’s Modern Industrial Strategy sets out a clear framework for us to work from, allowing us to fully realise the regional strengths we have here. This additional investment in the West of England reflects the momentum and potential of innovative businesses across the region.”
The announcement has also received strong backing from regional leaders.
Helen Godwin, Mayor of the West of England, said:
“As the country's fastest-growing regional economy, the West of England is home to incredibly innovative businesses and world-class research. Ours is a region where entrepreneurs choose to start, invest, and grow, and where we have all the ingredients needed to lead the industries of the future.
“This additional £8.5 million investment from the British Business Bank is another big vote of confidence in our region. It will help ambitious firms access the finance they need to create more jobs here and bring new products and services to market."
The investment is significant for local authorities, economic development teams and regional growth partnerships across the South West.
By increasing access to equity finance, the programme aims to stimulate innovation, create highly skilled jobs and strengthen sectors that align with national industrial priorities. It also reflects the growing role of mayoral combined authorities and regional partnerships in attracting investment and supporting economic development.
For councils and public sector leaders focused on inclusive growth, the funding provides another mechanism to help innovative SMEs overcome one of the biggest barriers to expansion: access to capital.
As competition between UK regions intensifies, initiatives such as the West of England Innovation Cluster are likely to play an increasingly important role in retaining talent, attracting investment and building resilient local economies.
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