Record quarter for investment at NW Fund

THE North West Fund has reported it’s busiest-ever quarter, investing £9.6m in 30 businesses across the region.

Backed by the European Investment Bank and European Regional Development Fund, the £185m NW Fund provides debt and equity funding to growing SMEs. The first quarter tally represents 88% of the entire total made during 2011.

Since launching in December 2010  it has £20.5m into 83 businesses, of which 14 have received more than one round of funding.

Andy Leach, chief executive of North West Business Finance, which manages The North West Fund said the pipeline of potential deals is healthy for the rest of the year.

He said: “2011 was all about establishing The North West Fund, creating awareness and inspiring the region’s entrepreneurs to apply for funding to grow their businesses.  This year is now about delivering a step-up in investment completions as we capitalise on the momentum established in 2011.

“As our investment rate over the past four months is more than five times that of the previous 11 months, we are demonstrably moving through the gears.”

The Fund invests between £50,000 and £2m, with investments allocated across six sub-funds: Business Loans; Venture Capital; Development Capital; Energy & Environmental; Biomedical and Digital & Creative.

Mr Leach added: ““We are delighted with how the first quarter went and particularly with how each sub-fund has made key investments in exciting businesses.

“Crucially, we are confident about the rest of the year. Our new investment pipeline is very strong and we expect to provide increasing amounts of follow-on funding to those portfolio businesses that have achieved their initial plans and have further growth potential.”

Meanwhile, Liverpool-based Albert Medical Devices  has sealed a second-round investment of £300,000 from SPARK Impact, managers of The North West Fund for Biomedical.

SPARK Impact made the investment after AMD used an initial £50,000 Pathfinder investment to develop its product prototype and branding.

Based at Liverpool Science Park, AMD has developed ‘Melio’, the world’s first intelligent catheter leg bag.

The follow-on funding will go towards the development of manufacturing tools to reduce the end user cost of the device further, grow its commercial team and work on its sales and marketing strategy.
 
Tom Fitzherbert, chief executive of AMD, said: “This is a great endorsement from The North West Fund for Biomedical, not only for the product but also for the team who have worked extremely hard to get the ‘Melio’ leg bag approved and into the marketplace.”
 
Dr Penny Attridge, senior investment director at SPARK Impact and manager of The North West Fund for Biomedical, said: “AMD has made great progress sincethe Pathfinder investment in 2011.

“This is the first follow-on investment from the Biomedical fund and clearly demonstrates that investing modest amounts via the Pathfinder model is working.”