The Treasury and the British Business Bank have announced a £100m deployment for the next tranche of the Investor Pathways Capital Initiative, designed to back early-stage regional venture capital funds across the UK.
The £100m allocation represents the second phase of a broader £400m programme intended to seed new funds included those managed by first-time and emerging venture fund managers outside traditional financial hubs.
The commitment follows a £90m deployment in June 2026 to the initiative’s inaugural cohort.
Announcing the funding alongside visits to businesses and investors in Sheffield and Leeds, Economic Secretary to the Treasury Lucy Rigby and Chancellor John Healey emphasised the government’s aim to expand venture capital access beyond London and address regional funding disparities.
“One of my priorities as Chancellor is wealth creation. That means building an economy that helps people live well. I know there is a cost of business and it will not go unnoticed,” said Healey.
“This must involve stepping up our support for the businesses who invest in people, and this £100m boost will help provide the fuel to drive new life into local economies up and down the country.”
Economic Secretary to the Treasury Lucy Rigby added: “We want growth in every postcode and businesses are integral to that as the absolute backbone of our economy.
“Unlocking investment and capital for British businesses, backing firms with practical support and ensuring businesses wherever they are can get the finance they need to grow, innovate and create jobs.”
