NStar offers a guiding light

Oct 18 2006 By Andrew Mitchell, Chief Executive Of Venture Capital Investment Firm Nstar, The Journal

NStar has delivered £33m of early stage finance for the region and is now working on a similar step change in helping to prepare companies for investment.

We have two bespoke funds providing capital for the region's early stage businesses. The team is also building a strong infrastructure of support to help innovative businesses throughout the North-East, providing investment readiness programmes, mentoring schemes and levering private sector finance.

We have also recently been appointed by One NorthEast to deliver an integrated Investment Readiness programme for the region.

This new £1.8m initiative has been designed to help increase the number of SMEs trading in the region and also improve existing survival and growth rates.

Investment Readiness provides advice and training to help firms improve their business propositions and, in turn, grow profitably.

The programme aims to assist hundreds of SMEs over the next two years and will be delivered through web-based services, tailored courses, innovative mentor schemes and a range of events.

Guidance will also be available on sourcing financial capital, to help businesses access appropriate investment finance and raise funds for growth.

Many good business ideas have the potential to become profitable companies.

However, these ideas must be developed with a clear view as to how they will be financed and with an understanding of the expectations of potential investors.

Providing the right support to businesses throughout their tentative early years is essential to help firms realise their ambitions and potentially develop into the Fastest 50 enterprises of tomorrow.

We are dedicated to supporting growing companies at every stage of their development. This includes working to attract further investment into the area to create new funding opportunities for firms and help build a dynamic and self-sustaining investment culture in the region.

As part of this ongoing role, NStar has recently announced a partnership with Beer and Partners, a leading source of venture capital and business angel investment for growing SME businesses throughout the UK.

This will help early stage businesses in the region tap into a network of over 1,300 private investors across the UK.

The firm is facilitating the creation of a private sector investment syndicate for the North-East, which will both create private liquidity to co-invest alongside institutional venture capitalists and create exciting new opportunities for investors.

It is in the process of setting up an informal angel syndicate in the region. To provide expert support for growing businesses, NStar is developing a database of more than 100 experienced entrepreneurs and managers who are keen to support small companies.

Our new Accelerator Mentor Scheme places experienced entrepreneurs with companies seeking to raise in excess of £1m in equity finance.

One company already benefiting from this is Wireless Dynamics, which gained support from an experienced mentor with a strong commercial background in the wireless communications industry. Tim Rae joined the firm as chief executive officer and so far has helped to secure a range of funding worth £650,000.

We are providing a wide infrastructure of support to firms across the region to help them realise their potential, through funds and support services.

The Fastest 50 recognises some of the most successful companies in the region and offers inspiration to developing local businesses striving to succeed.