North-east firms flocking to access superfund
MORE than 350 applications have been received from North-east businesses looking for growth cash from the region’s new taxpayer-backed £125m superfund since its launch a month ago.
With public sector funding likely to be squeezed in the coming years, the Finance for Business North East fund is seen as a vital cog in maintaining the North-east’s momentum in encouraging entrepreneurial-driven growth.
The response of the local business community has been described as “tremendous” by the professionals charged with assessing the investment potential of businesses.
Andrew Mitchell, chief executive of North East Finance which will oversee the day-to-day running of the Finance for Business North East Fund, said: “We have been very encouraged by the strong interest shown in the fund, both at the launch event - which was standing room only - and by the number of applications since then.”
Newcastle-based NorthStar Equity Investors is one of the six fund managers and is responsible for investing in technology start-ups and established businesses.
Chief executive Marion Bernard said: “We have a tremendous amount of interest so far, with 160 enquiries. These are from businesses who have formulated business plans and are looking for investment support to get started or grow.”
Ms Bernard went on to say that many enquiries are from the sectors in which the North-east is strong, namely software, digital, renewables, life sciences and healthcare.
Regional development agency One North East announced details of the superfund last year and got the green light from government last August.
The fund comprises £62.5m of One North East and European Regional Development Fund (ERDF) 2007-13 money, with a £62.5m from the European Investment Bank (EIB).
Leading venture capitalist Robert Drummond, who is heading the Finance for Business North East Fund Investment Advisory Board, said: “In the last few years we have seen the North-east flower with new enterprise and industry and I have no doubt that there are many great small businesses which will put these new funds to good use.”
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