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The British Design Fund (BDF) has secured a £5 million commitment from the British Business Bank to support early-stage UK businesses designing and manufacturing physical products, strengthening access to equity finance for product-led innovation across the country.
The investment, made through the British Business Bank’s Regional Angels Programme, will support BDF’s mission to back founders building scalable, UK-based product businesses in sectors such as health, sustainability and assistive technology. The programme was launched in 2019 to address regional imbalances in early-stage funding and focuses on angel networks and investors operating outside London.
Managed by Sapphire Capital Partners LLP, the British Design Fund operates as both an early-stage fund and angel network, working closely with founders to help turn innovative product ideas into viable commercial businesses. Its existing portfolio spans the length of the UK, from the South West through to Scotland, reflecting a strong emphasis on regional innovation.
Chancellor of the Exchequer Rachel Reeves said the commitment underlined 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 back you,” she said.
The British Business Bank said the investment recognised the depth of UK talent in advanced engineering and manufacturing. Mark Barry, senior investment director at the bank, said partnering with BDF would help unlock early-stage opportunities nationwide and support founders developing innovative, product-led solutions.
BDF Advisors chief executive Damon Bonser welcomed the backing, saying it would allow the fund to support more entrepreneurs tackling real-world problems through design, engineering and manufacturing. He added that the commitment would help founders move from concept to early-stage commercialisation at a time when access to patient capital remains critical.
Vasiliki Carson, partner at Sapphire Capital Partners, said the investment would contribute to narrowing regional disparities in early-stage funding, helping ensure that promising product businesses can access capital regardless of where they are based.
The £5m commitment adds further momentum to efforts to strengthen the UK’s early-stage investment ecosystem and support home-grown product innovation at a national level.
