Powerful investment for agency
NORTH Tyneside brand agency B7 is set to grow and create new jobs after securing investment from the Northern Powerhouse Investment Fund II.
The Cobalt Business Exchangebased company was launched four years ago by David Broom as a solo practice, focusing on management and business growth consultancy for a number of business owners, later adding marketing services in-house to boost solutions on offer to clients.
The company has now secured an undisclosed investment from the NPIF II – NEL Smaller Loans, which is managed by NEL Fund Managers and part of the Northern Powerhouse Investment Fund II.
The investment marks the first deal completed in the North East since the launch of the £660m fund in March this year. Building on the first Northern Powerhouse Investment Fund, companies across the North can access between £25,000 and £2m debt finance with NPIF II to start up or scale up.
Mr Groom said B7 will use the investment to recruit three more team members over the next six to eight months, doubling its team size.
The increased headcount will allow the business to specialise in specific marketing functions and capitalise on new business opportunities. A proportion of the investment will also be used to invest in new equipment, technology and tools, while also exploring early stage plans to expand its geographical footprint through expansion into the US.
Mr Broom, CEO of B7, said: “Our business has grown organically so far, but the NPIF II funding will enable us to scale up our ambitions much more rapidly. This investment will not only help us expand within the UK sector but also adapt and venture into new industries like AI and advanced technologies. We are excited to unlock a new realm of potential for B7, now made possible thanks to the support of NPIF II.
“As a Glaswegian, I relocated to Newcastle and have been truly impressed by how much opportunity the North East business community has provided. Partnering with NEL and NPIF II marks a significant milestone for us. NEL Fund Managers are synonymous with the region and hold an incredible reputation, and we are excited for our future.”
Susan Snowdon, investment executive at NEL Fund Managers, said: “B7 has a robust growth plan in place which our investment will enable them to put into action, and we’re excited to see how this ambitious business develops from here.
“The two elements of the Northern Powerhouse Investment Fund II that we’re managing provide regional businesses with a fantastic opportunity to develop new products, launch new services and create new North East jobs, and we’re keen to hear from as many firms as possible about how this growth capital could help them achieve their ambitions.”
Ken Cooper, managing director at British Business Bank, said: “Since expanding NPIF II to cover the entirety of the North East, there has been significant interest in accessing the Fund. It’s evident that the appetite for growth from business owners is there, with people like David recognizing NPIF II as a valuable source of funding to kickstart their growth plans.
“The North East has a rich manufacturing history and a thriving lowcarbon sector, but this latest investment also showcases the demand for creative services. David has built an impressive agency and, as our first deal in the region, it shows that NPIF II is there to support ambitious founders across the North East.”