BGF Commits £300M to Boost Midlands Businesses as Part of £3BN UK Growth Drive

By Anushka Malhotra

1 minute

Investment

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Quick Read: Investor BGF has pledged £300 million to Midlands businesses as part of a UK-wide £3 billion plan to support high-growth companies, including a parallel commitment to back female-led ventures.

Growth investor BGF has announced a new £300 million pledge to support high-potential businesses in the Midlands, reinforcing its commitment to regional economic growth as part of a £3 billion UK-wide investment strategy over the next five years.

The announcement strengthens BGF’s presence in the region, where it has already invested £541 million since 2011 in a wide range of businesses—from advanced manufacturers to fast-scaling tech firms.

Supporting Regional and Inclusive Growth

Alongside its regional investment, BGF is also dedicating £300 million to female-led businesses across the UK. This follows its initial £25 million backing of the Invest in Women Taskforce (IWT), which successfully mobilised over £250 million in capital last year.

Seb Saywood, Partner for the Midlands at BGF, said:

“We’ve backed great businesses in the Midlands for over a decade. This £300 million commitment deepens that long-standing support and highlights our confidence in the region’s ability to generate long-term, sustainable growth.”

A Proven Investor in Midlands Innovation

Founded in 2011, BGF (Business Growth Fund) is one of the most active growth capital investors in the world. With 16 offices across the UK and Ireland, it provides long-term, patient capital to entrepreneurs and management teams looking to scale their businesses.

This latest commitment is aimed at accelerating innovation, job creation, and business resilience across key Midlands sectors, contributing to the government’s broader levelling-up agenda.

What's new

West Midlands Health Tech Innovation Accelerator Unlocks Nearly £50M in Private Investment

The West Midlands Health Tech Innovation Accelerator (WMHTIA), led by the University of Birmingham, has generated an impressive £49.4 million in private co-investment within its first two years, significantly surpassing its original £14.5 million public funding allocation.

Funded through the Innovation Accelerator programme, coordinated by Innovate UK, the Department for Science, Innovation and Technology, and UK Research and Innovation, WMHTIA has become a leading force in advancing health technology innovation across the region.

The majority of the private investment—£36.3 million—was directly committed by investors to enterprises supported by the Accelerator. This achievement represents a threefold return on the initial public investment, demonstrating the strong investor confidence in the region’s health tech sector.

Powering Health Innovation Through Collaboration

The WMHTIA brings together 21 partners from academia, industry, and the NHS to help healthtech companies develop, validate, and commercialise cutting-edge medical technologies. So far, companies supported through the programme have also secured an additional £10 million in national public grants from agencies including NIHR, Eureka, and Innovate UK.

Including both public and private contributions, the total investment leveraged by WMHTIA now stands at £67.3 million.

Professor Adam Tickell, Vice-Chancellor, University of Birmingham:

We’re proud to support startups through the riskiest stages of innovation so more life-saving technologies reach patients. This exceptional investment proves what’s possible when academia, the NHS, and industry work together to drive economic growth and better health outcomes.

In March 2025, the Innovation Accelerator programme was extended with a further £30 million, including £4 million for the WMHTIA to continue supporting the region’s innovators in 2025/26.

Backing the Future of Health Tech

Richard Parker, Mayor of the West Midlands:

The West Midlands is leading medical tech innovation—from faster diagnoses to shorter hospital stays. Healthtech isn’t just improving lives; it’s creating secure, high-value jobs that drive inclusive growth.

Dean Cook, Executive Director of Place and Global, Innovate UK:

This programme shows how place-based innovation can unlock greater business investment in R&D. By connecting the region’s strengths, we’re creating high-value jobs and building globally significant innovation capability.

The WMHTIA continues to strengthen the region’s reputation as a national hub for health technology, with far-reaching benefits for patient care, job creation, and regional economic development.

By Anushka Malhotra

24 Jun