The British Design Fund has received a major boost through a $8.8 million commitment from the government-owned British Business Bank. Delivered via the Regional Angels Programme, the backing is set to support early-stage UK startups focused on designing and manufacturing physical products. The commitment aims to help more product-led founders turn new ideas into scalable businesses across the UK.
Fostering UK Product Innovation
Managed by Sapphire Capital Partners LLP, the British Design Fund (BDF) backs early-stage, UK-based startups that design and manufacture physical products. The fund engages with founders across sectors including health, sustainability, and assistive technology, helping them move from concept to commercial reality. This new commitment strengthens BDF’s ability to identify and support promising ventures nationwide.
The fund’s portfolio includes companies such as Koalaa, which develops advanced prosthetic limbs, reflecting BDF’s focus on high-impact innovation. Damon Bonser, CEO of BDF Advisors, said his team meets founders every day tackling fundamental problems through innovative manufacturing and engineering technologies, and that the commitment will help BDF back more of them as they build viable early-stage businesses.
Addressing Regional Funding Gaps
This commitment sits within the British Business Bank’s Regional Angels Programme, launched in 2019 to address regional imbalances in access to early-stage equity finance. The programme targets angel networks and early-stage investors outside London, aiming to widen access to capital for startups across the country.
By partnering with the British Design Fund, the programme supports product-focused businesses across a broad UK footprint, including companies located from the Southwest to Scotland. Vasiliki Carson, Partner at Sapphire Capital Partners LLP, highlighted that the commitment will contribute to addressing regional disparities in access to early-stage capital.
A Unified Vision for British Enterprise
The announcement drew strong government support, with Chancellor Rachel Reeves stating the UK wants to be the best place to start and scale a business, and that scale-ups create half of new jobs. She emphasized the government’s commitment to ensuring companies have the talent and capital to grow, and that the message is clear: if you invest in the UK, Britain will back you.
Industry leaders echoed the sentiment. Mark Barry, Senior Investment Director at the British Business Bank, pointed to the UK’s strength in advanced engineering and manufacturing and said the bank is pleased to partner with BDF to invest in early-stage opportunities across the country.
Ultimately, the $8.8 million commitment from the British Business Bank marks a meaningful step for the UK’s design and manufacturing startup ecosystem. It reinforces the British Design Fund’s mission to back product innovation and supports a wider push to expand early-stage funding beyond traditional hubs, helping the next generation of product-led companies grow and compete globally.