Middlesbrough-based gaming startup Radical Forge has raised £2.6m from Mercia Ventures as part of the Northern Powerhouse Investment Fund II. Radical Forge is the second Middlesbrough studio to receive funding from Mercia.

With the funding, the company will expand its team with the creation of 15 jobs, take on new and bigger contracts and launch its own game, Southfield, early next year. The company has contributed to games including Gang Beasts, Sea of Thieves, Golf With Your Friends, and Zombie Army 4, produces its own games and has recently established a publishing division.

Its first launch, the murder mystery puzzle Bright Paw, was published in 2020. The latest release, Southfield, is a farming game set on a fantasy island where players can grow crops, experiment with machinery and build their own homestead.

Bruce Slater, CEO, said: “Freddie and I are beyond happy to have secured this funding for Radical Forge. It will enable us to realise our ambitions for every team member and continue to build the studio while preserving the culture that is so important to us.”

Radical Forge is the second Middlesbrough studio to receive funding from Mercia. SockMonkey Studios secured investment from the Northern Powerhouse Investment Fund in 2020 and was acquired by Canada’s largest games publisher, Behaviour Interactive, three years later.

Chris McCourt of Mercia Ventures added: “Radical Forge are a talented team with a vibrant culture that has helped them attract and retain skilled developers. We believe the current environment holds real opportunities for the business.

“With many of the big players in the industry downsizing their teams, they have the chance to attract top talent, expand their skills base and win larger and more complex projects. The NPIF II funding will enable them to pursue their expansion strategy and provide a further boost for Middlesbrough’s growing games industry.”

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.