News

June 22, 2010

Venture capital fund launched to boost North West enterprise

North-West-based small firms in need of growth finance can pitch for investment following the launch of the largest venture capital fund of its kind in the UK.

The £185 million North West Fund, formerly the Venture Capital and Loan Fund, is aimed at small and medium-sized enterprises (SMEs). Six separate funding pots are available, each run by different equity houses.

The largest chunk of funds (£45 million), managed by YFM Private Equity, will provide loan packages and equity support for businesses looking to expand. A £35 million fund will be managed by FW Capital to provide loans of £50,000 to £250,000 to SMEs whose needs are not met by the banking sector, while Enterprise Ventures will manage a £30 million venture capital pot for early stage finance.

Three other specialist funds offering both venture capital and development capital are available for businesses in the biomedical, creative and green energy sectors.

Applications will be managed by Northwest Business Finance (NWBF) which is supported by the Northwest Regional Development Agency (NWDA).

A spokesman for NWBF said the application process was still being finalised, but the fund is expected to be ready to receive applications from the end of July 2010.

NWDA chairman, Robert Hough, said the fund would provide an important boost for the region’s economy, particularly as returns generated on investments would be automatically returned to the general pool, ensuring a continuous supply of capital.

“It’s an important initiative that will leverage hundreds of millions of pounds of private sector investment and, as an evergreen fund, will benefit businesses in our region for many years to come,” he said.

To apply for a loan, businesses will need to be based in the North West, employ fewer than 250 employees and demonstrate a viable business plan. Firms should also be able to show an inability to secure funding from other sources. Funding will be available on a match-funded basis.

In total, it is estimated that the overall fund will help to create or safeguard almost 14,000 jobs and generate total funding in excess of £400 million over the next five years.

• For more information about the fund, visit the NWDA Website or telephone Business Link Northwest on 0845 00 66 888