British Business Investments announces innovation advance facility

British Business Investments has this week announced an initial £20m funding facility to Sprk Capital Limited (Sprk), toprovide capital to smaller businesses in the UK engaged in innovation.

Sprk is a speciality lender to companies engaged in the innovation sector. Through the provision of advanced funding of UK R&D (research and development) and innovation grants, Sprk provides non-dilutive cashflow solutions to smaller businesses, enabling them to invest with confidence in their innovation projects.

Since it launched in 2021 Sprk has provided funding to innovation projects totalling over £150m. Although Sprk has a sector-agnostic lending strategy, 80% of its loans to date broadly represent the UK innovation market, with lending focused on the manufacturing, IT & communication, and the professional scientific and technical sectors.

Sprk is the first lender focused on the innovation lending sector to receive funding from British Business Investments.

Adam Kelly, managing director, British Business Investments said: “This £20m funding facility will enable Sprk to back UK smaller businesses in the innovation sector, providing them with cashflow solutions at critical points in their journey. We look forward to working with Sprk to help innovative smaller businesses across the UK to access the capital they need to scale up and become successful, high growth companies.”

Dominick Peasley, chief executive officer, Sprk Capital, said: “Today’s announcement demonstrates the commitment of British Business Investments to provide funding to SMEs that are critical to advancing UK-led innovation. The funding provided also enables us to work even closer with UK Research & Innovation through Innovate UK to provide additional capital to grant projects, accelerating UK-led innovation further.”

British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, aims to improve access to alternative finance for smaller businesses across the whole of the UK, while supporting the UK’s transition to a net zero economy. Since it was established in 2014, it has committed more than £3.8bn to providers of finance to UK smaller businesses.