Asset Management firm Mercia invested a total of over £23m in Yorkshire and Humber throughout last year

Will Clark, managing director of regional venture funds at Mercia, said: “Venture capital plays an important role in developing the industries of the future but with the majority of funding focused on London, the regions continue to be underserved. Mercia aims to address that gap.

“After years of investing in Yorkshire and Humber, we are now seeing the results, with some of the businesses we have backed emerging as leaders in their field and attracting attention from international buyers or investors.

Mercia also successfully exited some of its earlier investments including four Sheffield-based businesses. Faradion, a world leader in sodium-ion battery technology, was acquired for £100m by Indian conglomerate Reliance Industries, which is investing a further £25m in the site.

IN-PART, an academia-industry collaboration platform, was acquired by Inova, while hospitality tech firm Airship was acquired by industry leader Zonal, and Azzure IT by Content+Cloud.

In December Mercia also opened a new office in Hull, with the aim of expanding its presence in the Humber region and complement its existing office in Leeds.

Mercia provides funding from a range of sources including the Northern Powerhouse Investment Fund (NPIF) and its own funds and invests mainly in the regions outside of London.

Sean Hutchinson of the British Business Bank, said: “Through the Northern Powerhouse Investment Fund, Mercia is driving forward crucial investment in Yorkshire and the Humber, providing transformational funding opportunities for businesses.

"Throughout 2023, companies will be looking to secure access to finance to help them take their businesses to the next level, and it is no doubt that NPIF - Mercia Equity Finance will be pivotal in realising these goals.”