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Entrepreneur raises NPIF II funding for third cyber venture

Press release 17 October 2024

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A fast-growing Leeds cybersecurity company has secured a six-figure loan from NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II).

Xentra provides a full range of digital security solutions to clients including Leeds United FC, Leeds Bradford Airport, local councils, schools and NHS bodies. It is the third cyber venture from entrepreneur Henry Doyle, who previously co-founded both Altinet, the Leeds-based business that was sold to Arrow in 2020, and cyber training specialist Boxphish.

He acquired a majority stake in Xentra in January from the founder Marc Fairclough, who is now Chief Operating Officer. Since then they have led a growth drive, increasing the number of employees from two to 14 and winning a raft of high-profile clients. The team now plans to double the size of the business within the next 12 months. The funding will provide additional working capital to support its growth and create four to five new jobs by the end of this year.

Xentra assesses clients’ needs and recommends the right solutions to help them secure their networks and meet standards such as ISO 27001. It provides managed services ranging from 24-hour monitoring to firewalls, email security and storage and is a specialist in safeguarding, supporting schools and colleges with a total of around 125,000 pupils.

As cyber risks increase, every organisation needs security but with so many different technologies and new threats emerging all the time, building the right infrastructure is a team game. Our experts help clients choose the right solutions and create a safe working or learning environment. The funding will help us deliver our customer acquisition strategy and continue our rapid expansion. - Henry Doyle CEO, Xentra
Xentra is a one-stop shop for all of an organisation’s cybersecurity needs. Henry has done a remarkable job to achieve such rapid growth in a matter of months and has built a strong management team. The NPIF II funding will provide the working capital they need to take the business forward. - David Wright Mercia Debt

The £660m Northern Powerhouse Investment Fund II (NPIFII) 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.

Cybersecurity is a rapidly growing industry, with attacks being on the rise in an increasingly digital world. NPIF II funding is crucial for Northern businesses like Xentra, enabling them to scale, unlock potential in the region and contribute to the UK’s economic growth . The North’s tech sector has been growing rapidly for a long time now and we’re proud to see NPIF II play key role in helping tech companies in the region flourish. - Lizzy Upton Senior Manager, British Business Bank

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.

Further Information

If you are a journalist and have a media enquiry, please contact mediaenquiries@british-business-bank.co.uk.

Notes to editors

About Mercia Ventures

Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.

Mercia Ventures is a trading name of investment funds managed by Mercia Fund Management Limited and Mercia Regional Ventures Limited, part of the Mercia Asset Management PLC Group, and sits alongside the Group’s wider private equity, debt and proprietary balance sheet operations. The Group has 11 offices in the UK, and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions. As at 30 September 2023, Mercia Asset Management PLC has c.£1.5billion of assets under management. Mercia Asset Management PLC is quoted on AIM with the epic "MERC".

The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds, and details about open offers can be found through Mercia’s website.

Mercia Asset Management PLC is quoted on AIM with the epic "MERC" and includes the following wholly owned subsidiaries -

  • Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
  • Mercia Regional Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
  • Mercia Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
  • Frontier Development Capital Limited is authorised and regulated by the FCA under firm reference number 829697

www.mercia.co.uk

About the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, NPIF II provides a mix of debt and equity funding. NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development. 
  • The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Greater Manchester, Lancashire, Cheshire & Warrington, Cumbria, Liverpool City Region, Leeds City Region, South Yorkshire Combined Mayoral Authority, York & North Yorkshire, Humber and East Yorkshire, Northumberland, County Durham, Tyne & Wear
  • Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
  • For investment by NRIL at the sub-fund level - The investment from the Nations and Regions Investments Limited into [.] does not amount to any endorsement or warranty from Nations and Regions Investments Limited, the British Business Bank plc or the government of the United Kingdom.
  • For investment by NPIF II sub-fund at the investee company level - The investment from the Northern Powerhouse Investment Fund II into [.] does not amount to any endorsement or warranty from Nations and Regions Investments Limited, the British Business Bank plc or the government of the United Kingdom.

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