The Government is backing a new £100m phase of the British Business Bank’s Investor Pathways Capital Initiative to expand access to venture capital for early-stage businesses across the UK and support growth beyond London.

The initiative aims to launch as many as ten new venture capital funds across the country, supporting talented first-time fund managers from a broad range of backgrounds.

The latest investment is part of a wider £400m programme designed to provide early-stage companies with the capital needed to scale, create jobs and drive local economic growth.

In June, the British Business Bank committed up to £90m to ten new micro-funds through the first Investor Pathways Capital cohort. Applications for the next cohort, which are part of the latest £100m deployment, are due to open in autumn 2026.

The Government said the programme was intended to address regional disparities in access to finance and strengthen the UK’s business funding ecosystem, particularly for companies outside London. The initiative is also part of wider efforts following the Mansion House commitments to ensure businesses can access finance at every stage, from start-up through to scale-up.

Recent reforms to the Growth Guarantee Scheme are also expected to increase lending capacity by a further £2bn a year by 2028/29, helping an additional 12,000 smaller businesses access finance annually while extending loan terms and broadening eligibility.

Chancellor of the Exchequer John Healey MP said: "One of my priorities as Chancellor is wealth creation. That means building an economy that helps people live well. I know there is a cost of business and it will not go unnoticed.

"This must involve stepping up our support for the businesses who invest in people, and this £100m boost will help provide the fuel to drive new life into local economies up and down the country."

Economic secretary to the Treasury Lucy Rigby added: "We want growth in every postcode and businesses are integral to that as the absolute backbone of our economy. Unlocking investment and capital for British businesses, backing firms with practical support and ensuring businesses wherever they are can get the finance they need to grow, innovate and create jobs."

---