Radical Forge Secures £2.6m Funding to Fuel Expansion
Deal News | Nov 05, 2024 | Mercia Fund Management (Mercia Ventures)
Radical Forge, a games studio based in Middlesbrough, has successfully raised £2.6 million in funding from NPIF II Mercia Equity Finance, managed by Mercia Ventures under the Northern Powerhouse Investment Fund II. This capital injection will facilitate the company's growth, enabling the creation of 15 new jobs, securing larger contracts, and launching its new game, Southfield, next year. Founded in 2017 by Teesside University graduates Bruce Slater and Freddie Babord, Radical Forge has collaborated on notable games and established a publishing division. The recent funding follows in the footsteps of another Middlesbrough company, SockMonkey Studios, which also benefited from NPIF II before being acquired by a major Canadian publisher. Chris McCourt of Mercia Ventures emphasizes the strategic opportunities available amid industry downsizing, particularly in the North of England, where NPIF II is crucial to driving economic growth by supporting local businesses.
Sectors
- Video Game Development
- Private Equity and Venture Capital
- Economic Development
Geography
- United Kingdom – The article pertains to investment activities and business growth strategies focused on regions within the United Kingdom, specifically the North of England.
- Middlesbrough – Radical Forge is based in Middlesbrough, highlighting local economic activities and growth in the gaming sector within this specific location.
- North of England – NPIF II's goal is to enhance economic prospects throughout the North of England by supporting innovative businesses like Radical Forge.
Industry
- Video Game Development – The article focuses on Radical Forge, a games studio involved in developing and publishing video games, which forms part of the broader entertainment and technology sectors.
- Private Equity and Venture Capital – Mercia Ventures' management of equity financing indicates private equity and venture capital involvement, critical for supporting and scaling emerging businesses.
- Economic Development – The Northern Powerhouse Investment Fund II aims to foster economic growth across the North of England by facilitating investments in small and medium-sized enterprises.
Financials
- £2.6 million – The amount raised by Radical Forge from NPIF II Mercia Equity Finance for expansion and development purposes.
- £660 million – The total size of the Northern Powerhouse Investment Fund II, which provides financial support to businesses in the North of England.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Radical Forge | Target Company | Company | A games studio based in Middlesbrough that has received funding to expand its operations and enhance its product offerings. |
| Mercia Ventures | Equity Finance Manager | Company | A private equity and venture capital firm managing the equity finance under the Northern Powerhouse Investment Fund II. |
| Northern Powerhouse Investment Fund II (NPIF II) | Funding Source | Government | A government-backed fund providing financial support to drive economic growth in the North of England. |
| Bruce Slater | Co-Founder & CEO | Person | Co-founder and CEO of Radical Forge, actively involved in securing funding and leading company expansion. |
| Freddie Babord | Co-Founder | Person | Co-founder of Radical Forge, collaborating on company growth and development strategies. |
| Chris McCourt | Representative | Person | Works with Mercia Ventures and provided insights on the potential growth opportunities for Radical Forge. |
| Cerelo Advisory | Corporate Finance Advisor | Company | Leeds-based advisory firm that provided fundraising advice to Radical Forge. |