The British Design Fund (BDF) has received a £5 million commitment from the British Business Bank to support young UK companies to design and manufacture physical products, increasing access to equity finance for product-led innovation across the country.
The investment, made through the British Business Bank’s Regional Angels program, will support BDF’s mission to help founders build scalable, UK-based product businesses in sectors such as healthcare, sustainability and assistive technology. The program was launched in 2019 to address regional imbalances in early-stage funding and focuses on angel networks and investors operating outside of London.
Managed by Sapphire Capital Partners LLP, the British Design Fund acts as both an early-stage fund and angel network, working closely with founders to turn innovative product ideas into viable commercial businesses. The existing portfolio spans the entire UK, from the South West to Scotland, reflecting a strong focus on regional innovation.
Finance Minister Rachel Reeves said the pledge underlines the Government’s ambition to make the UK the best place to start and scale a business. She highlighted the role of scale-ups in job creation and said the funding would help give entrepreneurs the capital and confidence to grow. “Our message is clear: if you invest here, Britain will support you,” she said.
The British Business Bank said the investment recognized the diversity of UK talent in cutting-edge engineering and manufacturing. Mark Barry, senior investment director at the bank, said the partnership with BDF would help unlock early-stage opportunities across the country and support founders to develop innovative, product-led solutions.
Damon Bonser, managing director of BDF Advisors, welcomed the support, saying it would enable the fund to help more entrepreneurs address real-world problems through design, engineering and manufacturing. He added that the commitment would help the founders move from concept to early commercialization at a time when access to patient capital remains critical.
Vasiliki Carson, partner at Sapphire Capital Partners, said the investment would help reduce regional disparities in early-stage funding and ensure promising product companies can access capital regardless of their location.
The £5 million commitment adds further momentum to efforts to strengthen the UK’s early-stage investment ecosystem and support homegrown product innovation at a national level.
