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Games studio set to forge ahead and create 15 jobs after £2.6m NPIF II fundraise

Press release 06 November 2024

Radical Forge, the Middlesbrough-based games studio, has raised £2.6m from NPIF II – Mercia Equity Finance, which is managed by Mercia Ventures as part of the Northern Powerhouse Investment Fund II (NPIF II).

Three men stand in front of a display of books, games, and toy figures

The NPIF II funding will enable the company to expand its team with the creation of 15 jobs, take on new and bigger contracts and launch its own game, Southfield, early next year.

Established in 2017 by two Teesside University computer games graduates, Bruce Slater and Freddie Babord, Radical Forge now employs around 70 people. The company has worked with some of the top names in the industry and contributed to games including Gang Beasts, Sea of Thieves, Golf With Your Friends, and Zombie Army 4.

It also produces its own games and has recently established a publishing division. Its first launch, the murder mystery puzzle Bright Paw, was published in 2020 and won the title of Best Puzzle Game at the prestigious NYX game awards. The latest release, Southfield, is a farming game set on a fantasy island where players can grow crops, experiment with machinery and build their own homestead.

Bruce Slater, CEO, said:

Freddie and I are beyond happy to have secured this funding for Radical Forge. It will enable us to realise our ambitions for every team member and continue to build the studio while preserving the culture that is so important to us.

Radical Forge is the second Middlesbrough studio to receive funding from Mercia. SockMonkey Studios secured investment from the Northern Powerhouse Investment Fund in 2020 and was acquired by Canada’s largest games publisher, Behaviour Interactive, three years later.

Chris McCourt of Mercia Ventures, added:

Radical Forge are a talented team with a vibrant culture that has helped them attract and retain skilled developers. We believe the current environment holds real opportunities for the business. With many of the big players in the industry downsizing their teams, they have the chance to attract top talent, expand their skills base and win larger and more complex projects. The NPIF II funding will enable them to pursue their expansion strategy and provide a further boost for Middlesbrough’s growing games industry.

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.

Mick Morris and Jonny Sharp of Leeds-based games specialists Cerelo Advisory provided fundraising advice to Radical Forge.

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.

NPIF II – Mercia Equity Finance can provide equity investments in the NPIF II area with a primary focus on the Yorkshire and Humber regions of City of Kingston upon Hull and East Riding of Yorkshire, North Yorkshire, South Yorkshire and West Yorkshire.

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 Venture’ 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) Fundsand 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).

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