NPIF II – PXN’s investment programme PraeSeed returns with most diverse cohort yet and major focus on deep tech

• PraeSeed was founded by PXN Ventures with backing from the Northern Powerhouse Investment Fund II to support early-stage founders
• Now in its third year, the programme has invested £3m into 15 northern businesses and has plans to back up to eight more this year from a £1.6m pot
• Three quarters of the companies selected for this year’s cohort are led by diverse founders, with over half having at least one female founder

PXN Ventures has unveiled the third cohort for PraeSeed, its annual investor readiness programme aimed at supporting early-stage founders in the North and backed by the British Business Bank’s Northern Powerhouse Investment Fund II (NPIF II).

Three quarters of this year’s cohort of 13 companies are led by founders from diverse backgrounds, with more than half having at least one female founder, reflecting PraeSeed’s commitment to broadening access to funding.

Deep tech and life sciences start-ups make up the majority of this year’s intake. Both sectors are commonly affected by a lack of patient capital, particularly in the North of England and at pre-seed level, as many are started by specialists in their field, but need support to refine their operations and proposition to attract the investment they need to scale.

The programme begins 8 June and will run for 6 weeks, encompassing practical workshops, one-to-one mentoring support from PXN’s investment team, specialist finance sessions from Finance for Founders’ Sophie Conaghan, pitching support and advice and a wider curriculum designed to help each founder raise their initial round and subsequent fundraising thereafter.

PraeSeed culminates in an Investor Showcase, taking place in September, which will give each founder the chance to pitch for co-investment in front of some of the region’s most active angel investors and VC firms. Past showcases have welcomed over 100 guests from the likes of NatWest, Innovate UK, Manchester Angels, Fhunded Angels and more.

Up to eight companies taking part this year will receive a £200k equity investment from NPIF II – PXN Equity Finance, which is managed by PXN Ventures as part of the Northern Powerhouse Investment Fund II.

The companies receiving a place on the programme include Ardhann (Manchester), which has built graphene-based sensors to detect corrosion in pipelines and industrial infrastructure in real time, and University of Manchester spinout CASA Space Tech, which is developing a coating to reduce atmospheric drag on satellites.

York-based Antigonie Biosciences is developing new treatments for blood cancers that can reach bone marrow, while Lancaster’s Chronotaxia is developing a wearable device to help GPs rule out skin cancer before referring patients to hospital. Two further life sciences businesses selected for this year’s programme are Manchester’s Lutèo Medical, which is developing gut microbiome treatments for skin conditions such as eczema and psoriasis, and Newcastle’s Sheba, a metabolic health platform optimising GLP-1 treatments for female hormonal cycles.

This year has also seen a significant number of applications from companies addressing opportunities in sustainability and the green economy. Agreka Build (Cheshire) turns surplus wheat straw into natural insulation boards for the construction industry while Manchester’s PalmPro Enzymes is engineering enzymes to increase the amount of oil extracted from vegetable crops. They are joined by RecoVolt (Newcastle), a PhD spinout building automated equipment to safely discharge used lithium-ion batteries, including those used in electric vehicles, before they can be recycled, and TeraSort (Manchester), which uses AI-powered robotics to sort dry mixed recycling, replacing manual picking at waste facilities.

The final companies making up this year’s PraeSeed intake includes Convergent Labs (Durham), which has developed a manufacturing process for a semiconductor material critical to next-generation medical scanners. Good Bubble (Manchester), a sustainable children’s toiletries brand featuring licensed characters including Peppa Pig and the Gruffalo and sold in Boots and Ocado, and Bradford’s NexCAD, which uses AI to automate the compliance checking of engineering drawings for manufacturers, conclude the 2026 cohort.

Dr Elizabeth Young, PraeSeed Lead and Investment Manager at PXN, said: “The North of England is teeming with exceptional founders creating solutions to global problems. They’ve established businesses that leverage their specialist skill and knowledge, but a lack of ‘first-cheque’ capital can stop them from realising their full potential and attracting more significant investment for scale. PraeSeed fills this gap, preparing founders to work with investors and tap into the deep pool of capital in the North and beyond.

“We’re proud that PraeSeed has entered its third year and we’ve backed some brilliant businesses already. None of this would be possible without the support of the British Business Bank.”

Sue Barnard, Senior Investment Manager at British Business Bank, added: “PraeSeed continues to play a vital role in strengthening the early-stage investment pipeline across the North of England. This year’s cohort reflects the growing diversity and depth of talent in the region, and the importance of ensuring that access to finance is open to founders from all backgrounds. It’s great to see so many businesses that align with the UK’s Modern Industrial Strategy priorities, and we look forward to see how they unlock future growth and continue to drive regional economic impact.”

NPIF II – PXN Equity Finance can provide investments in the NPIF II area with a primary focus on the North West regions of Cheshire, Cumbria, Greater Manchester, Lancashire and Merseyside.

The £660m Northern Powerhouse Investment Fund II (NPIF II) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.