A £210 million investment fund has launched to support smaller businesses in the South East of England, addressing a long-standing gap in regional finance. The British Business Bank’s South East Investment Fund will offer loans between £25,000 and £2 million, alongside equity investments of up to £5 million, covering areas from Buckinghamshire to Kent and the Isle of Wight.
The scheme targets small and medium-sized enterprises (SMEs) seeking to start, scale, or expand, with a focus on innovation and job creation. Its launch follows data showing the South East hosts 17 % of the UK’s university spinouts—second only to London, yet received just 5 % of national equity investment by value in 2023. Officials say it will bridge this disconnect by providing alternative financing routes for academic-led ventures.
Debt financing will be managed by The FSE Group, while Maven Capital Partners will oversee equity investments. The first transaction was a £250,000 loan to Process Vision, a Basingstoke-based technology company, to support its commercial growth and international expansion.
It is now active.
Business Secretary Jonathan Reynolds framed the initiative as essential for “good growth” across the region. He said, “We are determined not to let access to investment be a barrier to success,” noting its role in helping businesses hire, relocate, or expand internationally. The launch aligns with the bank’s broader push to provide regional finance outside London, with an East of England Investment Fund set to follow.
Its structure, combining debt and equity, could help reduce reliance on traditional lenders, which often reject SMEs with unconventional business models.
Interim CEO David Hourican said the fund will help stimulate economic growth throughout the region and ensure businesses have local access to the finance they need to grow, scale and expand.
