New start-ups fund announced for the East Midlands
Aimed at helping the region’s start-up and early stage businesses, the East Midlands Early Growth Fund is aimed at young businesses looking for £20,000 and £200,000 of finance.
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The fund will be managed by E-Synergy and the group’s chief executive, Andrew Stevenson, said he expected the fund to invest in around 70 small businesses in the next five years.
“Early Growth Funds are very much at the cutting edge of the difficult process of trying to get new businesses off the ground and on to a viable growth path, “ he said.
“E-Synergy brings several years experience to this, but we know that there is no magic formula for success since the life of early stage companies is unpredictable.”
The new will invest alongside private investors, and will work closely with members of Growth Investment Network East Midlands (GINEM).
Every £1 invested by the fund must be matched by at least an equal amount from a private investor.
This will help attract a further £5m of private investment into small businesses in the region creating a total investment fund of £10million.
To receive investment, each business must have less than 50 employees and either be trading for less than 12 months, or has been trading for less than three years with a turnover below £100,000 per annum.
© Crimson Business Ltd. 2006
