Northern Powerhouse Investment Fund II helping businesses across the North access finance and grow
An independent evaluation of the Northern Powerhouse Investment Fund II (NPIF II) has highlighted its growing role in helping businesses across the North access investment, support innovation and achieve their growth ambitions.
The Early Assessment Report, undertaken by independent research company SQW Ltd for the British Business Bank, found strong evidence that the fund is addressing regional finance gaps and supporting smaller businesses that might otherwise struggle to secure investment.
By September 2025, NPIF II had provided £115 million of investment through 324 investments to 306 businesses, helping companies across the North access the finance needed to develop new products, expand operations and create opportunities for growth.
More recent figures published in May 2026 show that the fund has facilitated almost £275 million of investment into more than 400 businesses.
Supporting innovation and technology businesses
The evaluation highlights the importance of investment in sectors that are central to the North East's economy and NETPark's community of science and technology businesses.
Information and communication businesses accounted for the largest number of companies supported by NPIF II, with 47 receiving investment, followed by professional, scientific and technical activities (42 businesses) and manufacturing (41 businesses).
These sectors closely align with NETPark's strengths in advanced electronics, space, defence, life sciences and advanced manufacturing, where access to investment is often critical to turning research and technology into commercially viable products and services.
For innovative businesses, securing finance can be particularly challenging during the early stages of development, when significant investment in research, specialist equipment and technical expertise may be required before products reach the market.
The findings underline the importance of regional investment programmes in helping businesses overcome these challenges and access the funding needed to develop and scale their technologies.
Investment delivering wider business benefits
The evaluation also examined the wider £1.6 billion Nations and Regions Investment Funds programme, which includes NPIF II and five other regional funds.
Across the programme, £294 million had been invested in 877 businesses by September 2025, attracting a further £233 million in private sector investment.
Significantly, 81% of businesses surveyed reported that they would either have been unable to secure finance without the programme or would have secured funding on a smaller scale or over a longer timeframe.
Businesses receiving investment are already reporting benefits including improved productivity, increased innovation, workforce development and business growth.
The findings demonstrate the contribution that targeted investment can make to strengthening regional economies and supporting the development of innovative businesses outside London and the South East.
Creating opportunities for growth at NETPark
Access to finance is an important part of supporting the growth of science and technology businesses at NETPark, alongside specialist facilities, research expertise and opportunities for collaboration.
Home to more than 40 companies, NETPark supports businesses at different stages of development, from early-stage technology ventures and university spin-outs to established businesses expanding their research, development and manufacturing operations.
With the completion of NETPark Phase 3 providing additional space for growing businesses, access to investment remains an important factor in enabling companies to develop new technologies, recruit specialist talent and expand into new markets.
The findings from the NPIF II evaluation reinforce the importance of ensuring ambitious businesses across the North East can access the finance and support they need to realise their growth potential.
Find out more: Read the British Business Bank's evaluation of NPIF II.
