About This Fund
NPIF – Mercia Equity Finance is a government-backed venture capital fund managed by Mercia Asset Management, operating through its subsidiary Mercia Fund Management, as part of the Northern Powerhouse Investment Fund (NPIF). The NPIF was a landmark £400 million initiative launched in February 2017 by the British Business Bank with co-funding from the European Investment Bank and the European Regional Development Fund. The fund was established specifically to address the persistent underfunding of innovative SMEs across Yorkshire, Humber, and Tees Valley — regions that have historically received a disproportionately low share of UK venture capital compared to London and the South East of England.
The fund deploys equity investments ranging from £100,000 to £2 million into early-stage and growth-stage businesses across a broad range of sectors, with particular strength in technology, artificial intelligence, clean energy, healthcare innovation, and advanced manufacturing. Mercia brings a nationwide network of regional offices and specialist investment teams, offering portfolio companies not only capital but active hands-on strategic support, co-investment introductions, and access to Mercia's broader fund ecosystem. The investment strategy deliberately targets companies with growth trajectories that cannot be sustained through traditional debt financing alone, making the fund a critical enabler for ambitious Northern founders seeking long-term equity partners.
Since its inception in 2017, NPIF – Mercia Equity Finance has deployed over £71 million across more than 67 businesses in Yorkshire, Humber, and Tees Valley, supporting the creation of over 600 direct jobs in the region. Portfolio highlights include Faradion, a sodium-ion battery technology company sold for approximately £100 million to Reliance Industries, and GI UK, acquired by a Dutch multinational. Backed by the European Investment Bank, the European Regional Development Fund, and HM Government, the fund has catalysed substantial private co-investment alongside its public funding commitments, helping to build a more vibrant and sustainable venture capital ecosystem across the North of England.