A new fund has been launched which is dedicated to early-stage technology and knowledge-based businesses.
The £4.6m Seedcorn Fund aims to invest into companies which might otherwise be seen as too risky by mainstream backers and expects to fill a ‘significant gap’ in the market.
The fund, managed by the South Yorkshire Investment Fund, offers ‘proof of concept’ funding offering up to £75,000 for start-up businesses which have a technically proven product but need to fix their position in the market.
There is also money available for ‘commercialisation’ which can offer firms as much as £500,000 in one go when a company is ready to go to market.
Tony Goulbourn, chief executive of SYIF, said: “Just like our other funds, the Seedcorn Fund will be run on sound commercial lines with all the discipline of a traditional fund. For SYIF, it will help us to fill the gap that we have for investment in innovative, early stage pre-revenue businesses.
“The new fund will also fill the gap in the local finance market for ventures that are often seen as too risky by mainstream finance providers.
“For South Yorkshire, it will help to attract and retain the kind of businesses that will shape our economy for many years to come.”
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