British Business Investments (BBI), a commercial subsidiary of the British Business Bank (BBB), has announced an initial £20 million funding facility for Sprk Capital Limited (Sprk). The funding aims to support smaller businesses in the UK engaged in innovation by providing alternative finance options.
Sprk specialises in lending to companies in the innovation sector, offering advanced funding for UK R&D tax credits and innovation grants. These financial solutions enable smaller businesses to access cashflow earlier, helping them invest in critical projects without diluting equity.
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Since its inception in 2014, British Business Investments has committed over £3.8 billion to finance providers for UK smaller businesses. The organisation also plays a role in advancing the UK’s net zero transition by improving access to alternative funding across the country.
Sprk, established in 2021, has provided funding totalling over £150 million to support innovation projects, focusing on manufacturing, IT and communication, and professional scientific and technical sectors. Currently, innovation-related incentives such as tax credits and grants provide £16 billion in funding to smaller UK businesses annually. Sprk is the first lender in the innovation-focused sector to receive funding from British Business Investments.
The funding aligns with the British Business Bank’s partnership with Innovate UK, formalised in a 2024 memorandum of understanding to promote investment and growth through innovation. The collaboration aims to create new pathways for UK businesses, ensuring better-tailored support for innovative enterprises.
Adam Kelly, Managing Director of British Business Investments, stated:
“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 access the capital they need to scale up and become successful, high-growth companies.”
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By GlobalDataDominick Peasley, CEO of Sprk Capital, highlighted the significance of the partnership: “Today’s announcement demonstrates the commitment of British Business Investments to provide funding to SMEs critical to advancing UK-led innovation. This funding enables us to work closer with UK Research & Innovation through Innovate UK, accelerating UK-led innovation further.”
Scott O’Brien, Chief Investment Officer at Innovate UK, added: “This new funding facility with Sprk supports pathways through which innovative UK businesses start, scale and succeed, alongside our portfolio of products and services designed to drive economic growth.”
Triple Point, which played a role in enabling the funding, welcomed the partnership. Chris Collings, Relationship Director at Triple Point, commented: “Our ongoing commitment to Sprk in this crucial lending market reflects our dedication to innovation and growth-driving SMEs across the UK. The new partnership with British Business Investments creates further opportunities to expand these activities.”
The initial £20 million is expected to help hundreds of SMEs advance innovation in critical areas such as net zero, artificial intelligence, and sustainability.
