The availability of funding in North East England has increased greatly in recent years. This has now gone beyond grants with some serious seed and venture capital options available.
The following is just a few, with others to follow shortly.
Business: BE Group
Name of Fund: Let’s Grow North & East Yorkshire
A fund aimed at capital investment and R&D projects from £4 million Regional Growth Fund programme
Aimed towards both manufacturing and service sector businesses operating beyond regional boundaries. In other words bringing money in to the northeast region.
The minimum size of the project has to be £125,000 and it must be completed by March 2017 – so you had better get your skates on.
The grant contribution can be between 10% and 25% depending upon applicability.
Business: Innovate UK / SBRI
Name of Fund: Small Business Research Initiative
Grant funding through competitions based on government identified themes.
If the project fits with one of the innovation themes then a fund can be applied for to support early stage development.
Typically a reasonably substantial/serious project is required, i.e. hundreds of thousands to millions.
An important underlying theme is promotion of links between the commercial and the academic world to bring the very latest technological ideas to market.
Business: Business Investment Group (BIG)
Name of Fund: Equity Funding
BIG provides both equity finance from a rolling membership of enterepreneur investors.
Investment projects range from £10,000 to £1 million on average, but larger investments may also be possible.
The addition of expertise from people quite similar to those seeking investment may be more attractive in some cases more than others.
Business: Northstar Ventures
Name of Fund: Equity, POC and hybrid
Northstar Ventures administer a number of early stage funds from proof of concept to full blown venture capital investments.
They also have a notable social investment fund aimed at sustainable business models.
The creative content fund is a specialised fund aimed at TV, film, interactive media, music and games sectors.
Business: Rivers Capital Partners
Name of Fund: North East Angel fund / Micro loan
The North East Angel fund is an early stage fund for small businesses in the North East of England.
Typical investments are between £50K and £150K, but the funding can also form part of an investment pack with other investors involved.
There is also a micro-loan option available of between £1K and £25K. This loan is aimed at businesses that have not been able to obtain loans from banks or mainstream lenders – although there is a hefty list of exclusions that apply.
Business: North East Finance
Name of Fund: North East Angel fund / Micro loan
North East Finance manages the Finance for Business programme. This supplies a mixture of debt and equity finance from £1,000 to £1.25m. It is aimed at SMEs either based in the North East of England or intending to relocate to the North East. The underlying intent is growth, so it is for ambitious forward looking enterprises.
The intent is to provide a range of funds to suit all requirements and situations. To a large extent the clue is in the titles of the seven available which are:
- North East Micro Loan Fund
- North East Proof of Concept Fund
- North East Technology Fund
- North East Accelerator Fund
- North East Angel Fund
- North East Growth Plus Fund
- North East Growth Fund
Name of Fund: The North East Technology Fund LP
The North East Technology Fund is a £25m venture capital fund dedicated to investing in technology businesses with outstanding potential which are based in, or are willing to relocate to, the North East of England.
The fund’s investment range is £50,000 to £1,250,000 at the initial round with follow on finance available and it can invest at all stages of business development from seed to development capital. For more details on these criteria, or if you have a business that requires capital, please click here for further information.
The IP Group manages the £28m North East Technology Fund which invests in technology businesses that are either based in the North East of England or intending to relocate to the North East.
The aim is to provide flexible investment structures in the form of equity and mezzanine debt to businesses at all stages of their development.
Investments can be as low as £50k up to seven figure investments. More advanced options may also be available in the form of co-invested multi-million pound series A transactions.
Business: Finance Tree
Name of Fund: Investor Connection Service
Finance Tree does not directly operate a fund, but offers a brokerage service that accesses up to 100 different funding sources.
They claim to have sourced over £50m in venture capital for early stage, startup, growth and development requirements.
Their specialisms include:
- Providing support to identify and raise finance
- Venture capital strategy and management
- Designing and building structures for investment vehicles, funds or syndicates
- Sourcing and supporting Angel Investment
- Intellectual Property Advice
We will be adding to this list shortly so it is worth a re-visit.
Funding North East England, beyond grants has only started to be serious in recent years, but is already paying dividends.
If you have a good idea and a business you would like to buy to make it happen then the funds above may well come in useful.