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Education broadband supplier raises £1m from NPIF II and Mercia

Press release 03 October 2024

A Yorkshire company that provides broadband and cloud services to schools throughout the UK has secured £1m from NPIF II – Mercia Debt Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund II (NPIF II), and Mercia’s SME Loans fund.

Two men standing in front of talk straight logo

The funding will provide Talk Straight with additional working capital to support its growth following a buy-out of the business. The buy-out has given control of the business to David Tindall, while enabling Timothy Sedgwick – who retired five years ago – to realise his investment.

The company, which is based in Ilkley and employs 70 staff, supplies over 2,500 schools and academies using its own cloud-based services which enables it to maintain strict controls over the flow of traffic and content.

Talk Straight was founded in 2005 by David Tindall and Timothy Sedgwick and initially provided internet phone services to businesses. However following changes to the rules on school broadband, they saw the opportunity to offer a specialist service and schools now make up over 90% of its client base.

Talk Straight has been growing steadily in recent years, with turnover increasing by 15% to almost £11m in the year to May 2024. The NPIF II funding will enable it to bolster its team with the creation of around six new jobs and expand its sales and marketing activities.

Traditionally school broadband was provided by local authorities but increasingly they are pulling out of the market and schools can now shop around for the best deal. Talk Straight has already built a reputation as a leading supplier to the education sector. This funding will enable us to continue our growth and pursue our aim to become the largest provider of broadband to schools in the UK. - David Tindall CEO of Talk Straight
Talk Straight has been expanding steadily in recent years. As more schools turn to independent suppliers, the market is growing and as the company currently supplies 10% of schools, there is huge potential. We are pleased to be able to support David and the team to help them take advantage of the opportunities ahead. - Andy Heaton Mercia Debt
The move from local authority supplied school broadband to independent suppliers has driven a period of high growth in the industry. The NPIF II investment will help Talk Straight to create new employment opportunities and boost its marketing capabilities, demonstrating how NPIF II can unlock business potential and create jobs in the local area. - Lizzy Upton Senior Manager, British Business Bank

The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

Further Information

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Notes to editors

About Mercia Ventures

Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.

Mercia Ventures is a trading name of investment funds managed by Mercia Fund Management Limited and Mercia Regional Ventures Limited, part of the Mercia Asset Management PLC Group, and sits alongside the Group’s wider private equity, debt and proprietary balance sheet operations. The Group has 11 offices in the UK, and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions. As at 30 September 2023, Mercia Asset Management PLC has c.£1.5billion of assets under management. Mercia Asset Management PLC is quoted on AIM with the epic "MERC".

The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds, and details about open offers can be found through Mercia’s website.

Mercia Asset Management PLC is quoted on AIM with the epic "MERC" and includes the following wholly owned subsidiaries -

  • Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
  • Mercia Regional Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
  • Mercia Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
  • Frontier Development Capital Limited is authorised and regulated by the FCA under firm reference number 829697

www.mercia.co.uk

About the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, NPIF II provides a mix of debt and equity funding. NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development. 
  • The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Greater Manchester, Lancashire, Cheshire & Warrington, Cumbria, Liverpool City Region, Leeds City Region, South Yorkshire Combined Mayoral Authority, York & North Yorkshire, Humber and East Yorkshire, Northumberland, County Durham, Tyne & Wear
  • Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
  • For investment by NRIL at the sub-fund level
    The investment from the Nations and Regions Investments Limited into [.] does not amount to any endorsement or warranty from Nations and Regions Investments Limited, the British Business Bank plc or the government of the United Kingdom. 
  • For investment by NPIF II sub-fund at the investee company level

The investment from the Northern Powerhouse Investment Fund II into [.] does not amount to any endorsement or warranty from Nations and Regions Investments Limited, the British Business Bank plc or the government of the United Kingdom.

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