Surge of interest in £15m creative fund
A £15m private equity fund that was launched last month to support fast-growing digital and creative firms in the North West has already received 70 bids.
The Northwest Fund 4 Digital and Creative is part of the European Union-backed £185m North West Fund which launched at the same time.
The digital and creative pot is being managed by London-based AXM Venture Capital which has handled a similar fund in the capital worth £6.5m.
Former PKF corporate finance partner David Smith, pictured, will run the fund’s
Manchester office while Rajesh Sharma, a former investment manager at the Merseyside Special Investment Fund, will handle Merseyside. European Union rules stipulate that 40% of the cash is spent in Merseyside.
AXM’s chairman Fred Mendelsohn and former LDC man John Handley will also work on the fund. Until 2015 it will be making equity investments of between £50,000 to £1.5m in companies ranging from start-ups to more established ventures across the North West.
Mr Smith said: “There’s a huge amount of raw talent which reflects the fact that early stage entrepreneurs are up for it and want to run their own businesses. These days they can develop the business very simply without vast sums of capital.
“Many are getting together with mentors or seedcorn financiers and there are hundreds of people spawning new businesses and also serial entrepreneurs who want to work with us. I don’t believe finding quality management teams is an issue.”
The North West Fund is holding an open day for interested companies at the Liverpool Arena and Convention Centre today.
