In December 2025, the British Business Bank announced a major financial boost for manufacturing and product-focused startups in the UK. As someone who has spent over two decades navigating business ecosystems and helping founders turn ideas into impactful ventures, I was excited to analyze what this funding means for entrepreneurs, particularly those focused on physical products. Here's a breakdown of what’s happening, why it matters, and how you can make the most of it.
What’s Happening:
The British Business Bank has committed €5.7 million (£5 million) to the British Design Fund (BDF). This fund specializes in backing early-stage startups that design and manufacture physical products. Managed by Sapphire Capital Partners LLP, BDF will use the funding to expand its investment efforts across the UK, focusing on businesses in sectors like health, sustainability, and assistive technology.
This follows a noticeable trend of increasing public-private investment partnerships aimed at bridging the funding gap for hard-tech startups outside of London. Entrepreneurs often struggle with accessing early-stage capital in regions less saturated with angel investors. By operating through the Regional Angels Programme, the fund can target underserved areas, which levels the playing field for emerging innovators across the country.
Why You Should Care:
If you're working on a product-led startup, whether it's a groundbreaking prosthetic arm or a sustainable manufacturing process, this funding opens doors. The focus on industries like health and sustainability also aligns perfectly with current market trends emphasizing impact-driven ventures. Investors know these sectors are ripe for scalable opportunities coupled with long-term relevance.
One standout example from the BDF portfolio is Koalaa, which designs prosthetic products for people with limb loss. Backing such businesses shows the fund’s commitment not only to financial return but to meaningful innovation.
Insights from My Own Experience:
Investors are looking for viable ideas backed by passionate teams ready to address real-world challenges. As a startup founder, and someone who has led projects selected by international organizations like OECD, I’ve seen firsthand how essential it is to balance creativity with market viability. Think about the problem you’re solving and whether your solution stands out in terms of usability, scalability, and overall impact. This is what investors, including those at BDF, are watching for.
Step-by-Step Guide to Securing Funding from BDF
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Start Building Relationships: Make connections with institutions guiding entrepreneurs, such as accelerators like Brightlands or Y Startup School. Investors appreciate credibility built through programs.
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Focus on Regional Support Systems: If you operate outside of London, leverage local resources like the South West Angel Investors Network. The Regional Angels Programme prioritizes startups in less-funded areas.
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Perfect Your Product Pitch: Highlight not just innovation but also market readiness. Show you understand your buyer personas and the routes you’ll use to scale your product. Refer to tools like the Business Model Canvas Generator to sharpen your vision.
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Prove Sustainability: Whether your product improves healthcare or reduces carbon footprints, make this clear. Use stats, customer feedback, or prototype demonstrations to show evidence.
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Explore Other Funding Streams: While awaiting angel networks or BDF backing, consider grants, collaborations, or crowdfunding platforms that align with your market.
Mistakes to Avoid:
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Underestimating Regional Networks: Don’t assume your idea needs to start in London. The Regional Angels Programme explicitly encourages businesses in other parts of the UK.
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Pitching Too Soon: My experience has taught me that rushing to demonstrate feasibility before it's polished can cost you opportunities. Validate your idea first, this avoids being tagged as an investment risk.
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Neglecting Stakeholder Needs: Invest time understanding customer pain points. Building from that requires less pivoting and inspires investor confidence.
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Ignoring the Press Release Details: When the British Design Fund or similar organizations announce new funding rounds, dig deeper into the application process and what they expect from founders.
Industry Trends to Watch
This funding follows other significant investments in UK manufacturing startups. Atomik AM raised over €700k earlier this year, scaling its advanced manufacturing businesses. Holdson secured €1.7 million, focusing on cutting-edge surface finishing tech for aerospace and automotive. A closer look reveals shared traits among successful startups: regional diversity, deep tech, and scalable solutions.
Beyond these trends, global interest is shifting toward sustainability. If you sideline eco-conscious design in your manufacturing plans, you’re missing out on both funding opportunities and wider consumer appeal.
My Takeaway
This funding isn’t just an injection of cash; it’s part of a blueprint for reshaping how product-led startups are launched in the UK. With so many early-stage ventures still struggling to access funds outside established tech hubs, initiatives like the British Design Fund are critical. They help put the UK on the map as a global leader not just in digital innovation but in physical product development, a sector that often gets overlooked.
If you're building something tangible and need inspiration, think cross-discipline. My own work in sectors like deeptech and game-based learning has shown that blending ideas generates breakthroughs. Whether you’re designing the next sustainable manufacturing process or medical device, this is the time to shift gears and position yourself as a contender.
For further details or application insight, learn more at the British Design Fund website. Let’s keep building products that don’t just impress investors but change lives.
FAQ
1. What is the recent funding announcement for UK manufacturing startups?
The British Business Bank committed €5.7 million (£5 million) to the British Design Fund (BDF), targeting early-stage UK startups that design and manufacture physical products. Read more about the funding
2. Who manages the British Design Fund?
The British Design Fund is managed by Sapphire Capital Partners LLP and supports early-stage product innovators across sectors like health and sustainability.
3. What sectors are the focus of the British Design Fund?
The fund focuses on health, sustainability, and assistive technology, reflecting industries with scalable and impactful opportunities.
4. How does the Regional Angels Programme benefit startups?
The Regional Angels Programme addresses funding imbalances by targeting investments in startups outside London, promoting regional equity. Learn more about the Regional Angels Programme
5. Who is a notable portfolio company of the British Design Fund?
Koalaa, a company that designs prosthetic products, is an example of a meaningful startup supported by the British Design Fund.
6. What are some other startups that recently received funding in the manufacturing sector?
Atomik AM raised €713k, and Holdson secured €1.7 million to advance manufacturing technologies. Discover Atomik AM's funding | Explore Holdson's funding
7. What are the implications of the new funding for UK startups?
This funding closes the investment gap for product-led startups, especially in underserved regions, while fostering innovation in physical products.
8. What leadership comments were made about the initiative?
Mark Barry of the British Business Bank acknowledged the UK’s world-class talent in manufacturing and highlighted the importance of nationwide investment. Review leadership insights
9. What strategic advice is there for founders seeking funding?
Founders should perfect their product pitch, align with regional networks, and demonstrate their innovation and market viability.
10. Where can I find more information on the British Design Fund?
Visit the British Design Fund's official website to explore their investment model and funding opportunities. Learn more about the British Design Fund
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.