North East business growth fund hits £200 million milestone

North East firms have benefited from more than £200 million of investment thanks to a regional growth fund designed to boost economic growth.

The Finance for Business North East (FFBNE) programme, a groundbreaking suite of seven funds managed by North East Finance, reached the milestone when Teesside technology firm CatalySystems received £666k from the Technology Fund.

The Wilton-based company, which helps the process industries to conserve, clean and re-use waste water, will use the funds to expand its in-house resources and strengthen its presence in overseas markets.

It has also received investment from the FFBNE Proof of Concept Fund and £150k from two angel investors.

Since its launch in 2010, FFBNE has provided more than £90 million of debt and equity funding to almost 600 SMEs, creating or safeguarding around 3,000 jobs. In addition, the programme has secured more than £110m of private sector cash to support deals from venture capital firms, business angels and other investors – taking the overall investment figure over the £200m mark.

Andrew Mitchell, chief executive of North East Finance, said: “This funding scheme was designed to boost the growth of local companies and the North East economy.

“As economic conditions have eased and confidence has returned to the market, more companies have applied for FFBNE funds to fast-track their investment plans.

“Private equity and debt finance have played a major role in kick-starting economic growth again after a damaging recession. The fact that FFBNE has reached this magnificent £200m milestone is testament to that.

“Money is still available from the fund and could provide the ideal boost for businesses that require additional investment.”

More than half of investments have been made in Tyne & Wear companies but in recent months fund managers have received a steady influx of applications from Teesside, County Durham and Northumberland.

Backed by cash from the European Regional Development Fund (ERDF) and the European Investment Bank (EIB), the scheme is on track to support 850 businesses and create or safeguard 5,000 jobs by the end of next year.

It has benefited a host of firms from micro businesses and start-ups to fast-growth medium-sized enterprises. Investments have been made in companies across a wide range of sectors, including bio-technology, manufacturing, engineering and renewable energy.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →