The Northern Powerhouse Investment Fund II (NPIF II) has completed its first deal in the North East since the launch of the £660m fund in March this year.
Based in Newcastle-upon-Tyne, dynamic storytelling brand agency, B7, has secured an investment from NPIF II – NEL Smaller Loans, which is managed by NEL Fund Managers and part of the Northern Powerhouse Investment Fund II.
Building on the first Northern Powerhouse Investment Fund, businesses across the entire North of England can now access between £25k and £2m debt finance with NPIF II to start up, scale up or continue their growth journey.
B7 will use the investment to bring in new talent by recruiting three more team members over the next six to eight months, doubling its team size. The increased headcount will allow the business to specialise in specific marketing functions and capitalise on the new business opportunities it will bring. Whilst the business remains sector agnostic, it plans to leverage expertise into specific sectors to create specialized offerings in construction, as well as expanding their existing recruitment, retail technology and financial services offerings.
A proportion of the investment will also be used to invest in state-of-the-art equipment, technology and tools to ensure the team have the necessary resources to fulfil projects effectively. The business plans to grow strategically and sustainably, with early stage plans to expand its geographical reach via a US expansion. With existing networks here in the construction industry, B7 will leverage this to expand its services here.
Founded by David Broom in 2020, B7 began as a solo practice that focused on management and business growth consultancy for various business owners. Leveraging his extensive expertise in sales, David identified an opportunity to expand B7’s offerings by integrating marketing services in-house, which enhanced the range of solutions it could provide to clients.
David Broom, CEO of B7, said: “Our business has grown organically so far, but the NPIF II funding will enable us to scale up our ambitions much more rapidly. This investment will not only help us expand within the UK sector but also adapt and venture into new industries like AI and advanced technologies. We are excited to unlock a new realm of potential for B7, now made possible thanks to the support of NPIF II.
“As a Glaswegian, I relocated to Newcastle and have been truly impressed by how much opportunity the North East business community has provided. Partnering with NEL and NPIF II marks a significant milestone for us. NEL Fund Managers are synonymous with the region and hold an incredible reputation, and we are excited for our future.”
Susan Snowdon, investment executive, at NEL Fund Managers, said: “B7 has a robust growth plan in place which our investment will enable them to put into action and we’re excited to see how this ambitious business develops from here.
“The two elements of the Northern Powerhouse Investment Fund II that we’re managing provide regional businesses with a fantastic opportunity to develop new products, launch new services and create new North East jobs, and we’re keen to hear from as many firms as possible about how this growth capital could help them achieve their commercial ambitions.”
Ken Cooper, Managing Director at British Business Bank said: “Since expanding NPIF II to cover the entirety of the North East, there has been significant interest in accessing the Fund. It’s evident that the appetite for growth from business owners is there, with people like David recognizing NPIF II as a valuable source of funding to kickstart their growth plans. The North East has a rich manufacturing history and a thriving low-carbon sector, but this latest investment also showcases the demand for creative services. David has built an impressive agency and, as our first deal in the region, it shows that NPIF II is there to support ambitious founders across the North East.”
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.