Joy at £2.4m techno boost

May 16 2008 Evening Gazette

ENTREPRENEURS and business leaders today welcomed a £2.4m funding boost for fledgling technology firms.

Regional development agency One NorthEast has approved the additional investment to extend the Proof of Concept fund (POC) to the end of 2009.

Originally set up with £10m from One NorthEast and the European Regional Development Fund, the POC backs innovative ideas at their earliest stages, helping to build prototypes and support research and development.

“It’s fantastic news,” said Mark Elliott, director of Middlesbrough’s Digital City Business, the Tees Valley’s digital and creative sector champion.

“The Proof of Concept fund has proved its own concept time and time again.

“We’ve encouraged companies to use it since its first days. It’s a really good example of a fund that concentrates on taking risks and getting results.”

Sarah Green, Confederation of British Industry (CBI) regional director, added: “Access to finance is critical to any small business. It’s clear there are opportunities for further growth in the digital sector in the Tees Valley and this will give more opportunities to companies.”

Mike Parker, spokesman for the North East Chamber of Commerce, said that continued assistance to young technology companies was crucial for the region.

“The cutting-edge companies are the vibrant future of the North-east economy. They have huge growth and earning potential.

“But this money helps because there can be quite a long lead time to prove to potential customers that their product is commercially sound.”

Darlington-based company C-Power received £60,000 in POC investment in 2006 to help develop technology to harness tidal power to deliver clean, green energy.

C-Power director Colin Pearce praised the move to extend the POC scheme.

“It’s great that more new and exciting companies in the North-east can receive help,” he said.

The fund is managed by NorthStar Equity Investors (NSEI).