Start-ups and small companies allocated £90m

16/11/07 16:45

A total of £90m has been allocated for new companies as part of the government’s efforts to tackle the lack of available finance for start-ups.

The funding is made up of £60m from government funds and an extra £30m of private sector money as part of the latest round of Enterprise Capital Funds.

Speaking at the launch of Enterprise Week, secretary of state for business, enterprise and regulatory reform John Hutton said:

“Almost 80% of small businesses seeking finance obtain it on their first attempt, but a small number still face difficulties, particularly companies seeking investment to grow. We're working to address these market failures.

“Enterprise Capital Funds help [small businesses] with high growth potential to raise equity finance up to £2m. This brings the total government commitment to this programme to more than £141m since last year.”

The latest funding round will be split equally between three investment groups. MMC Ventures will invest in businesses in the healthcare, technology and financial services sectors.

The Dawn Capital Fund will invest in more traditional sectors but where there is scope to make improvements through the use of technology.

Finally, Oxford Technology ECF will target early stage companies in the science, engineering and technology sectors.

David Quysner, chair of the Capital for Enterprise Board, said:

“These funds will target the equity gap, making investments in small, innovative companies that can produce good returns but which would otherwise struggle to get funded.”