Funding boost for innovative small businesses
A fund to support investment in small and innovative businesses will receive a £25 million boost from the Government, the Business Secretary Vince Cable has announced.
Enterprise Capital Funds are a Government initiative and were first launched in 2006. The latest fund will be known as Episode 1 and will support the provision of equity finance to small and high-growth businesses.
Episode 1 will:
* comprise a £37.5m fund of private investment (£12.5m) and government backing (£25m)
* invest between £250,000 and £2 million into 20 to 30 early-stage technology companies
* be led by Dr Simon Murdoch, an investor in companies such as LoveFilm, Zoopla and Shazam.
Business Secretary Vince Cable said the Government is "determined to give entrepreneurs the financial support they need to grow."
"This new £37.5 million Enterprise Capital Fund will target a serious gap in the equity market for high growth small firms," he said.
Dr Simon Murdoch said: "I know from personal experience, it is hard to start and grow a business, even without the added difficulties of the current economic climate. Raising venture funding is even harder. Our aim is to establish Episode 1 as the best place to come for early stage technology entrepreneurs looking for up to £2 million of funding."
Source - Gibson Hewitt