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Beyond investment: Fostering Northern business growth through the NPIF II network

Blog post 17 July 2024

Owner of The Potions Cauldron in Edinburgh

Simon Cunnington, Director at the British Business Bank reflects on how the Northern Powerhouse Investment Fund II impacts businesses beyond initial investment, and how access to guidance and a business community can be transformative for enabling growth.

The Northern Powerhouse Investment Fund II (NPIF II) is more than an investor for businesses in the North. It's a catalyst for growth, collaboration, and innovation, weaving a rich tapestry of support that goes beyond financial backing.

By nurturing partnerships and linking to the wider business eco-system, NPIF II and its appointed fund managers are building on the legacy of the first Fund, helping to establish a vibrant business ecosystem that empowers companies to thrive.

Since the British Business Bank first launched the first NPIF in 2017, there have been multiple examples of companies not only achieving significant growth but benefiting immensely from the ongoing support and mentorship provided by NPIF II and its fund managers. This element has proven crucial in helping businesses navigate challenges, seize new opportunities, and build lasting resilience.

Nurturing Nutry Nuts: Developing a global spread

Nutry Nuts, the nutritious nut butter cup brand, is a powerful example of how the Fund’s support can springboard a business to a global scale. With an investment of £70,000 from NPIF - River & GC Microfinance in 2022, Nutry Nuts not only secured the capital required to scale operations but also benefited from invaluable guidance and mentorship.

With NPIF, things were different. The fund managers help you from the very beginning and stay with you to see the business grow. The finance is a great benefit, but the support they provide is second to none. Mario Niszler Co-Founder, Nutry Nuts

It’s clear the Fund is achieving what it set out to do. Specialising in high-protein, reduced-sugar nut butter cups, the support NPIF provided facilitated the expansion of product lines to include five more variations, as well as develop a five figure social media presence. The business has also expanded globally into the United States, with aspirations to become the largest protein nut butter brand in the EMEA.

Growth like this takes much more than a financial injection. It takes real investment of time and care from fund managers, and it takes dedicated guidance and a supportive network that is committed to the long-term success of each business.

The Potions Cauldron: Brewing success with the right support

The Potions Cauldron, a magical drinks emporium and mini golf brand, offers another compelling example of growth and transformation under the Fund’s aegis. The business has grown significantly since securing a £100,000 investment from NPIF – BEF Microfinance in 2022.

It has expanded its operations, enhanced its product line, established additional sites across the UK, and set its eyes on international expansion. Its magical drink range is stocked in 120 HMV stores across the UK and is distributed to major retailers in the USA.

Its success since opening in 2018, has led to it increasing turnover from £1.4 million in 2022 to an expected £4.5 million in 2024.

Ben Fry, chief enchantment officer at The Potions Cauldron described the dynamic relationship between his business, NPIF, and Business Enterprise Fund:

Our relationship with NPIF and BEF extends beyond formalities, where we’ve participated in coffee mornings and attended chamber dinners— their consistent support is invaluable, rooted in a genuine connection beyond the financial transactions. We’re excited to see how our growth unfolds, and we’re holding fast to the team that helped us get here with their investment – BEF and NPIF Ben Fry Chief Enchantment Officer, The Potions Cauldron

Facilitating connections with other businesses and stakeholders and fostering a sense of community and mutual support is invaluable. It’s only by offering The Potions Cauldron access to new opportunities and collaborations that might have otherwise been out of reach that the business has been able to thrive in a way that surpasses its original vision.

This interconnected network has enabled the company to innovate, expand its market presence, and continuously evolve, demonstrating the profound impact a comprehensive support system can have.

Sitehop: Setting new industry standards

Sitehop, a pioneering cyber security firm based in Sheffield, offers another example of how NPIF's ongoing support can make a lasting impact. With a mission to revolutionise online security, Sitehop required not only financial backing but strategic guidance and industry connections to realise its ambitious goals.

Raising more than £1 million from NPIF – Mercia Equity Finance, and other private investors, Sitehop also accessed NPIF’s network of industry experts, helping it refine its technology, enhance its service offerings, and navigate the complex landscape of the cyber security industry.

Business is about making connections and having a great product and NPIF have helped us with both. Their continued support through inclusion in their online publicity and at trade shows has helped profile Sitehop as well as attract a wider focus on Sheffield as an area for investment too. Melissa Chambers CEO and cofounder, Sitehop

Tapping into a supportive business community

Real investment goes beyond financial transactions. By fostering a supportive business community, NPIF and NPIF II are creating a ripple effect that benefits the entire region.

The Funds regularly host events and roadshows, bringing together entrepreneurs, investors, and industry experts to provide a platform for networking, knowledge exchange, and collaboration. It’s through this regular drumbeat of activity that the British Business Bank is strengthening the business fabric of the North, day by day.

Fund managers play a crucial role in this ecosystem, staying close to the businesses they support and the communities they serve.

Their mentorship and advice are tailored to the unique needs of each business, ensuring that support is relevant and impactful. This hands-on approach helps businesses navigate challenges and achieve sustainable growth with real confidence.

The Northern Powerhouse Investment Fund II is not just an investor. It is a partner in growth, a platform for support, and a key relationship builder in the business community.

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