New round of Enterprise
Capital Funds boosts investment in high growth businesses
DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2007/102)
issued by The Government News Network on 13 November 2007
Three new groups
are to be awarded £60 million as part of the Government's
efforts to tackle the lack of financial backing available to
fledgling businesses.
The public funding will be combined with £30 million of private
sector money as part of the latest round of Enterprise Capital
Funds - designed to invest in small high growth companies.
Speaking at the launch of Enterprise Week, Secretary of State for
Business, Enterprise and Regulatory Reform John Hutton said:
"Almost 80 per cent of small businesses seeking finance
obtain it on their first attempt, but a small number still face
difficulties, particularly companies seeking investment to grow.
We're working to address these market failures.
"Enterprise Capital Funds help SMEs with high growth
potential to raise equity finance up to £2 million.
"This brings the total Government commitment to this
programme to more than £141 million since last year."
The three groups to receive Enterprise Capital Funds are:
* MMC Ventures Limited - a £30 million fund which will be
invested across the UK targeting businesses in the healthcare,
technology and financial services sectors.
* The Dawn Capital Fund - a £30 million fund which will invest in
traditional sectors where there is scope to make improvements
through the use of technology.
* Oxford Technology ECF - a £30 million fund operated by an
established fund management team which will operate out of Oxford
targeting early stage companies in the science, engineering and
technology sectors.
David Quysner, Chair of the Capital for Enterprise Board that
advised the Government during the assessment stage said:
"These new funds will be positive additions to the ECF
portfolio. They demonstrate that the model is attractive to good
quality fund managers and, just as importantly, to the private
investors willing to back them.
"These funds will target the equity gap, making investments
in small, innovative companies that can produce good returns but
which would otherwise struggle to get funded."
Mr Hutton also announced the creation of Capital for Enterprise
Limited, which will manage the funds from 1 April 2008.
The new body will take charge of a number of current government
programmes including the UK High Technology Fund, the Regional
Venture Capital Funds, Early Growth Funds and the Small Firms Loan
Guarantee Scheme.
Notes to editors
1. This is the second round of funding in the successful
Enterprise Capital Funds programme. Last year, £81.2m was
allocated to five groups to fund high growth businesses in need of investment.
2. Each of the three groups to receive Enterprise Capital Funds
must raise £10 million in private funds before they begin
investing in SMEs.
3. For inquiries about each of the three groups, please contact:
* MMC Ventures Limited, Bruce Macfarlane, Tel: 020 7938
2005
Mobile: 077 4702 4212, bruce.macfarlane@mmcventure.com,
http://www.mmcventure.com
* The Dawn Capital Fund, Norman Fiore, Tel: 020 7871
0594
norman@dawncapital.co.uk, http://www.dawncapital.co.uk
* Oxford Technology ECF, David Denny, Tel: 018 6578 4466,
Mobile: 079 6843 3650, david@oxfordtechnology.com, http://www.oxfordtechnology.com
4. The approval of these Enterprise Capital Funds is subject to
contract, and each group raising the full amount of private
capital (£10 million) within six months.
5. Capital for Enterprise will be managed by an independent
Board, chaired by David Quysner (current chair of the advisory
Capital for Enterprise Board) and accountable to the Secretary of
State, John Hutton.
6. More information about Enterprise Capital Funds can be found
at http://www.berr.gov.uk/bbf/small-business/info-business-owners/access-to-finance/enterprise-capital-funds/page37473.html
Department for Business, Enterprise & Regulatory
Reform
7th Floor, 1 Victoria Street, London SW1H 0ET
Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215
6740 (for those with hearing impairment)
http://www.berr.gov.uk