British Business Investments has provided a £20m funding facility with Sprk Capital Limited to assist businesses engaged in innovation.

Since its establishment in 2014, British Business Investments has committed over £3.8bn to various finance providers.

Sprk Capital, established in 2021, offers financial solutions like R&D tax credit loans and innovation grants.

Since its launch, Sprk has funded over £150m in innovation projects, focusing mainly on the manufacturing, IT, communication, and professional scientific sectors.

Dominick Peasley (pictured), chief executive officer of Sprk Capital, said: “Today’s announcement demonstrates the commitment of British Business Investments to provide funding to [small and medium enterpirses (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.”

Adam Kelly, managing director of 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.”

Scott O’Brien, chief investment officer, Innovate UK, added: “We recognise the liquidity challenges that can face cutting-edge businesses bringing new technologies to market.

“Together, the British Business Bank and Innovate UK support the end to end pathways through which innovative UK businesses start, scale and succeed.

O’Brien continued: “This new funding facility with Sprk supports those pathways, alongside our world-class portfolio of products and services designed to support businesses in bringing the best ideas to market and driving economic growth.

“The initial £20m has the potential to help fund hundreds of SMEs to achieve their goals of advancing technology and research in the UK into some of the most complex issues that are faced around net zero, AI and sustainability.”

Chris Collings, relationship director at Triple Point, said: “We’re proud to have played a role in enabling this funding through the restructuring of existing facilities and supporting the commencement of the relationship with BBI.

“Our ongoing commitment to SPRK in this crucial lending market reflects our dedication to the innovation and growth driving SMEs across the UK.

“The new partnership with BBI creates further opportunity to expand on these activities, and we look forward to working alongside the team as this initiative develops.”