The British Business Bank has announced a €5.7 million (£5 million) commitment to the London-based British Design Fund (BDF), an early-stage fund and angel network that backs UK product-focused businesses, through its Regional Angels Programme.
The fund is managed by Sapphire Capital Partners LLP and seeks to support UK-based startup enterprises that design and manufacture physical products.
Damon Bonser, CEO of BDF Advisors, says: “We welcome this commitment from the British Business Bank, which supports our continued efforts to back UK product innovation. We meet founders every day who are addressing fundamental problems in the world through innovative manufacturing and engineering technologies. This commitment enables the British Design Fund to continue its work with more founders and to help founders progress their ideas into viable early-stage businesses.”
In 2025, UK activity in early-stage manufacturing and product-centric innovation has been reflected in several targeted investments, particularly through regional funds.
The British Design Fund’s new €5.7 million commitment sits alongside deployments from the Northern Powerhouse Investment Fund II, which backed Atomik AM with €713k to scale its advanced manufacturing operations, and Holdson with €1.7 million to expand its electroform surface-finishing technology for aerospace, automotive, defence and fusion applications.
These rounds illustrate sustained public–private support for physical product development across UK regions, complementing the British Business Bank’s broader efforts to reduce geographic disparities in access to early-stage equity.
Mark Barry, Senior Investment Director at British Business Bank, adds: “The UK has an abundance of worldclass talent in advanced engineering and manufacturing and we’re delighted to partner with BDF to invest in these early-stage opportunities right across the country.”
Founded in 2016, BDF engages with founders developing UK-based product businesses across a range of sectors, such as health, sustainability, and assistive technology. The fund’s portfolio includes a diverse range of companies located across the UK, from the South West to Scotland.
The Regional Angels Programme, launched in 2019 with the objective of addressing regional imbalances in access to early-stage equity finance, targets angel networks and other early-stage investors outside of London.
This commitment supports this mission, enhancing access to capital for early-stage businesses across diverse sectors.
Chancellor of the Exchequer, Rachel Reeves, said: “We want the UK to be the best place to startup and scale-up. Half of new jobs in this country are created by scale-ups, and our tech, health and manufacturing sectors are second to none.
“This commitment by the British Business Bank will support even more entrepreneurs to take the leap and we have increased incentives at the Budget giving companies the talent and capital to grow. Our message is clear – if you invest here, Britain will back you.”
Read the orginal article: https://www.eu-startups.com/2025/12/uk-manufacturing-and-product-led-startups-set-for-increased-backing-through-e5-7-million-boost-for-the-british-design-fund/
