Member Article

£40 million Enterprise Capital Funds announced

Two new Enterprise Capital Funds (ECFs) are to be created under a multi-million pound Government scheme to boost innovation, jobs and growth for small businesses trapped in the equity gap.Enterprise Capital Funds invest a combination of private and public money in small high-growth businesses seeking up to £2 million of equity finance. The funds help to address the scarcity of equity capital in the £500,000 to £2 million funding rounds, which makes it difficult for a number of businesses to raise the finance they need.Small Business Minister, Margaret Hodge MP said: “These new funds will help many small businesses that might otherwise have been unable to develop their potential because there was no equity finance available to them. These funds demonstrate how the Government is actively working with private investors to create an environment where British businesses are given the world-class support they need to succeed.“The ECFs announced today are: The Seraphim Capital Fund – a £30 million generalist co-investment fund that will invest alongside leading business angels and other private investors drawing on the deal flow and investment experience afforded by the funds’ diverse investor base. The fund will be managed by a coalition of ‘business angel’ networks and will focus on investments in companies throughout the UK predominantly in the early stages of development. The second fund is the Amadeus Enterprise Capital Fund – a £10 million fund that will focus on seed technology investments. The Fund will be managed by Cambridge based Amadeus Capital Partners who are one of the country’s leading specialists in this sector.

This was posted in Bdaily's Members' News section by Ruth Mitchell .