The Seraphim Capital Fund has received £10m of funding from private investors from across the UK and US, as well as an additional £20m from the government.

The new fund will provide companies aiming to expand rapidly with equity capital from £500,000 up to £2m.

However, Seraphim also has a large network of angel or private investors, so entrepreneurs can benefit from the expertise or ‘mentor capital’ and additional financial backing of experienced business people.

The new fund was officially launched last night by Margaret Hodge MP, the Minister of State for Industry and the Regions, and was attended by members of angel networks, major banks and other funding organisations.

Hodge told the audience that the Seraphim fund was the first of its kind, and that there would be more ECFs (Enterprise Capital Funds) set up in the UK in the future.

She said: “The Seraphim fund has some unique features; it makes great use of the business angels and networks that have joined together in this bid.

“By bringing the experience of these entrepreneurial investors into the businesses they invest in they will maximise the chances of success.

“We hear more and more about the need for ‘Mentor Capital’ – a more nurturing kind of venture capital and I applaud the Seraphim Fund for directly addressing this issue.”

© Crimson Business Ltd. 2006