Early-stage companies across the UK are set to benefit from a multi-million-pound investment boost, as the Chancellor backs the next £100 million phase of the British Business Bank’s Investor Pathways Capital Initiative. This funding aims to expand access to venture capital beyond London, with plans for as many as 10 new venture capital funds to be launched across the UK.
The initiative supports first-time venture capital investment fund managers from diverse backgrounds, providing early capital for innovative businesses to scale up, drive local growth, and create jobs. The Chancellor of the Exchequer, John Healey MP, stated that a priority is wealth creation and building an economy that helps people live well, acknowledging the rising cost of business.
This £100 million deployment is part of a larger £400 million total investment through the initiative. In June, the British Business Bank committed up to £90 million to 10 new microfunds as part of the first Investor Pathways Capital cohort. Applications for the next cohort are expected to open in Autumn 2026.
Economic Secretary to the Treasury Lucy Rigby emphasised the government's desire for growth in every postcode, highlighting businesses as the economy's backbone. She noted the importance of unlocking investment and capital for British businesses, ensuring they can access the finance needed to grow, innovate, and create jobs.