Invest NI Launches New Equity Funds For SMEs

Local SMEs with high potential for growth could be set to benefit from two Equity Funds recently launched by Invest NI.

Part funded by the European Regional Development Fund, the agency has committed £95 million in total to establishing the new funds, with a range of firms eligible for the support.

The TechStart II fund will be managed by Techstart Vetures, a leading investor of seed capital. The £30 million fund will be distributed in initial investment rounds averaging at around £300,000 and up to £2 million in any one company over a series of rounds. The Proof of Concept grant programme remains a key offering, with companies being able to obtain grant funding ranging from £10,000-£35,000 to progress concept ideas.

Commenting on its appointment, Jamie Andrews, Partner in Techstart Ventures, said: "We are delighted to be appointed as managers of TechStart II. Techstart has been a very successful source of investment and concept funding, helping nearly 300 businesses bring forward growth plans and supporting businesses to accelerate the development of their products. Our renewed focus will be on start-up companies and small businesses in the early stages of innovation. The new fund will continue to work with the local universities to provide investment and assistance in university spin-out companies."

The £65million Crescent Capital IV fund will be managed by Crescent Capital and will offer companies within the technology, life sciences and manufacturing sectors investments of up to £2.5 million in initial investment rounds and up to £5million in any one company.

Colin Walsh, Partner at Crescent Capital, said the new fund brings great potential for investment in local companies.

"The launch of Crescent Capital IV is a great milestone. This is the fourth venture capital fund to be established by Crescent which has made investments in 38 companies across its three prior funds. Some of Northern Ireland's most exciting technology companies have emerged from these portfolios and we look forward to building on these prior successes by investing in early and development stage companies through their growth phase and on to exit."