Treasury launches £100m regional venture capital fund

The Treasury and British Business Bank have confirmed a new deployment of funds worth 100 million pounds for the Investor Pathways Capital Initiative. This allocation is intended to support early-stage regional venture capital funds throughout the United Kingdom, marking the second phase of a wider programme with an overall value of 400 million pounds.

The initiative aims to seed fresh investment vehicles managed by first-time and emerging fund managers who operate outside traditional financial hubs. A previous deployment of 90 million pounds was made in June 2026 to support the inaugural cohort of funds within this scheme. The announcement coincided with visits from government officials to businesses and investors located in Sheffield and Leeds.

Economic Secretary Lucy Rigby and Chancellor John Healey highlighted their objective to broaden access to venture capital beyond London while addressing disparities between regions. Mr Healey stated that wealth creation is a priority for the Chancellor, noting that supporting businesses which invest in people provides essential fuel for local economies nationwide. Ms Rigby emphasised the desire for growth across every postcode.

She described businesses as integral and central to economic activity. The government seeks to unlock investment capital for British enterprises by providing practical support. This approach ensures firms located anywhere can secure necessary finance to grow, innovate and create jobs. By backing these entities with targeted resources, officials aim to strengthen the backbone of the national economy.

The funding represents a significant step in addressing regional imbalances within the private sector financing landscape. Officials believe that expanding this network will help diverse local economies thrive through increased access to growth capital for innovative companies operating outside major metropolitan centres.