Enterprise Capital Funds to boost small business investment
A new round of Enterprise Capital Funds have been announced by the Government. Three new groups will receive £60 million in an effort to tackle the lack of investment backing currently available to small companies.
The Funds have been designed to invest in smaller high growth businesses, with £30m of private sector funding to be added to the public funding.
The three recipients of the new Funds are:
- MMC Ventures Limited - a £30 million fund which will be invested across the UK targeting businesses in the healthcare, technology and financial services sectors.
- The Dawn Capital Fund - a £30 million fund which will invest in traditional sectors where there is scope to make improvements through the use of technology.
- Oxford Technology ECF - a £30 million fund operated by an established fund management team which will operate out of Oxford targeting early stage companies in the science, engineering and technology sectors.
John Hutton, Secretary of State for Business, Enterprise and Regulatory Refort said:
"Almost 80 per cent 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."
The Secretary of Sate also announced the formation of Capital for Enterprise Limited, which will manage the funds from 1 April 2008.
The new body will take charge of a number of current government programmes including the UK High Technology Fund, the Regional Venture Capital Funds, Early Growth Funds and the Small Firms Loan Guarantee Scheme.
Posted November 19, 2007
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