Finance For Business North East
Finance for Business North East (formally known as the JEREMIE venture capital fund - Joint European Resources for Micro to Medium Enterprises Initiative), is the first fund of its type in England and will formally be open for business from 22 January 2010, when all financial and legal clearances will be in place.
The European Investment Bank - which has contributed £62.5m and the European Regional Development Fund 2007-2013 and One North East - jointly contributing £62.5m - have all cleared their finance for the £125m scheme.
The fund will be split into six separate funds initially, others to follow in early 2010 include micro-finance. General eligibility criteria for all six of the funds is as follows:
- SMEs
- Project located in the North East
- Viable business proposition with ability to make returns to the fund
- EC restriction on some sectors
The details of each fund are as follows:
Angel Match Fund
This fund is intended to be a small, entrepreneurial fund which will be very actively engaged with the region’s early-stage investment community generally and the business angel community in particular. It will invest in companies in any sector (other than the Excluded Sectors as defined in the Fund Management Agreement) and predominantly at the early stage of development, but may join business angels in later stage deals.
Special Eligibility Criteria
Generally must have private sector co-investors to partner in the investment
The fund’s investments will generally be between £50k and £150k
Total fund size £7,500,000.
Technology Proof of Concept Fund
The fund is intended to support the very early stages of business creation within the technology sector. The fund manager will work with the region’s universities, centres of excellence, individual entrepreneurs, technology start-ups and SMEs to develop new businesses or to fund specific, innovative projects which have the potential to create significant new commercial opportunities for existing businesses or universities.
The fund’s investments will generally be between £20k and £100k, but it will have the ability to complete follow-on investments above this level.
Total fund size £15,000,000
Growth Fund
The fund is intended to invest in relatively mature companies at development and growth stages in any sector (other than the Excluded Sectors as defined in the Fund Management Agreement). These companies will mostly be revenue generating and looking for growth capital. Its average investment per SME is anticipated to be approximately £180k.
The fund can complete investments of between £50k and £400k, with the maximum investment into any one company being limited to £400k per year and to 5% of the total fund size in aggregate.
Total fund size £20,000,000
Accelerator Fund
The fund will invest in companies and pre-start enterprises in any sector (other than those operating within the Excluded Sectors as defined in the Fund Management Agreement) at an early stage of their development, i.e. predominantly at the start-up and seed capital stages.
The fund can complete investments of between £50k and £750k, with the maximum investment into any one company being limited to £750k per year and to 10% of the total fund size in aggregate.
Where the fund’s aggregate investment in a company exceeds (or a contract is entered into in terms of which it may exceed) £750k, there must have been (or provision must be made so that there will be) pari passu (equal terms between private and public investors) co-investment by a private sector investor equal to at least 15% of the fund’s aggregate investment.
Total fund size £20,000,000
Technology Fund
The fund will invest in technology companies at any stage of their development or maturity, extending from proof of concept through to seed and development capital stages.
The fund will make equity type investments, principally to address the demand from technology companies for seed and development stage funding.
The fund can complete investments of between £50k and £1.25m, with the maximum investment into any one company being limited to £1.25m per year and to 10% of the total fund size in aggregate.
Total fund size £25,000,000
Growth Plus Fund
The fund is intended to invest in relatively mature companies at development and growth stages in any sector (other than the Excluded Sectors as defined in the Fund Management Agreement). It will in particular target companies which need a significant cash injection to facilitate a step-change in their business. These companies will mostly be revenue generating and looking for growth capital. The fund is intended to address the higher-end of the equity gap – investing on average a total of approximately £570k per SME.
The fund can complete investments of between £350k and £1.25m, with the maximum investment into any one company being limited to £1.25m per year and to 10% of the total fund size in aggregate
Total fund size £20,000,000
Please fill in the form below if you are interested in finding out any more about the funds.
