A new pilot funding programme to encourage Business Angels in the region to bring investment and expertise to pioneering innovative small and medium companies has awarded £2m to two North-based projects.
A total of £3m of Innovate UK funding has been shared
across three angel investor partners (AIPs). Each will work with local angel
networks and groups.
A consortium led by Sunderland-based North East Business
and Innovation Centre (BIC), has received £1m from Innovate
UK to support the growth of local angel
networks across the North East,
Yorkshire and North West. The programme,
which partners with the Innovation SuperNetwork, Leeds-based
North Invest and the national UK Business Angels Association, will encourage investment in
innovative early stage companies.
Northstar Ventures, one
of the most active early stage investors in the country, has also secured
£1m to work with start-up businesses, focusing on
spin outs from North East universities, to help them
secure angel investment and grant funding to accelerate their growth
potential at an earlier stage.
Paul McEldon, Chief
Executive of the North East BIC, said: “We are
delighted to be able to pilot the Regional Angel Investment Accelerator in the
North of England to stimulate and grow the angel community. Our programmes
support technology businesses at the forefront of innovation but we need to
proactively develop an engaged and diverse early stage investment community in
our regions to allow these businesses to grow and scale up. We are looking
forward to working with Innovate UK, angel investors and all our partners to
achieve this.”
Professor Adam Beaumont, Founder of
NorthInvest and member of the Masarati 100, commented on the funding, “My founding
belief was to create an organisation which could drive grass roots growth
through investment.
“The award of this fund is an important
milestone in the evolution of Northinvest, moving from not only driving private
angel investment, but having co-funds to manage as part of that funding
process.”
Jake
Berry, Northern Powerhouse Minister commented “The importance of investing in a
broad base of entrepreneurism across the North is a key tenet of achieving a
true depth and strength to the Northern Powerhouse. Initiatives, such as
this, which can bring together public and private funds in an agile manner, has
been borne out of the kind of cooperation which makes the North a great place
to do business.”
Alex Buchan, Director, Northstar Ventures,
said:, “As one of the leading early stage investors into UK businesses, we have been supporting cutting edge
businesses in the North East since 2004. Working
with angels has always been core to our offering, and we are
looking forward to opening up more
opportunities to those interested in investing in businesses
with R&D projects.”
The aim of this pilot funding programme from Innovate UK,
as part of UK Research and Innovation, is to increase
the pool of regional angel investors prepared to consider investing in earlier
stage, ambitious, innovative businesses in the regions.
The funding will be used to identify
suitable investment opportunities and investors, as well as provide grants
to businesses to deliver
innovation projects with a view to
longer term business angel involvement and future commercial success.
Successful businesses will receive a grant of up to 50% of the
costs of a specific innovation project, which lasts up to
12-months and have total
project costs between £40K and £300K.
Concurrent Angel investment in the business will allow
businesses to meet the rest of the costs and grow the business beyond the
project. Applications to the scheme are via the AIPs who are responsible for
raising awareness amongst both local angels and companies over the coming
months.
The three AIPs are:
- North East Business and Innovation
Centre (BIC) which is collaborating
with the Innovation SuperNetwork, North Invest and the UK
Business Angels Association (UKBAA), along with a
number of local angel
networks.
- Northstar Ventures
Limited, an established venture
capital fund manager with a strong track
record of funding alongside angel
investors.
- University of Bath for the SETsquared Partnership, which are
collaborating with the UK Business Angel Association (UKBAA) and regional angel
networks.
Business Angels, either based in the North or seeking to
invest in the North and SMEs undertaking R&D projects in the North should
contact hello@supernetwork.org.uk
Business Angels interested in investing in
spin-outs from Durham,
Newcastle, Northumbria and Sunderland Universities and other SMEs
undertaking R&D projects in the North East LEP region should contact AlexB@northstarventures.co.uk
