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.”
