Midven invests record sums in supporting Midlands SMEs

BIRMINGHAM based venture capital company Midven invested a record £12m in supporting growth businesses in the West Midlands during December.

The investment was split between three of the firm’s early stage businesses and takes the level of third party investment leveraged into the Advantage Growth Fund to more than £65m.

“It’s been an exciting period with several of our portfolio companies delivering substantial progress enabling them to raise significant levels of additional funding, in what is at present an undoubtedly difficult environment for fundraising,” said Midven chief executive Tony Stott.

Those raising additional funding are Microvisk – which was originally funded by Midven’s Rainbow Seed Fund in 2004 and subsequently by the AGF in 2007. The company has secured an additional £6m worth of equity investment to take its blood viscosity measurement device through clinical approvals and launch.

Additionally, 21 net, the Ledbury technology company that offers high speed internet access and multi-media services on board trains, has raised £5m in a round led by a leading European telecoms investor. This follows AGF’s initial investment in 2004.

“In our experience early stage technology businesses require several rounds of investment to succeed. Midven has an important role to play in helping its portfolio companies raise this funding and has an excellent track record of doing so,” said Mr Stott.

The third company to raise funds is i-Solutions Global, which originally received AGF funding in 2005. The Coventry business software supplier, which also has offices in Switzerland and the United States, raised £1m.

“These are major developments and particularly beneficial to the Midlands and wider UK economy. The activity, growth and development of these potentially world-class  businesses is further evidence of the value of regional based equity funding which helps create new jobs and strong companies with good growth prospects,” added Mr Stott.

Midven is a privately owned commercial fund manager with a successful track record of investing in Midlands SMEs.

It has recently launched the £8m Early Advantage Fund and the £18.4m Exceed Midlands Advantage Fund, taking its funds under management to £61m across five funds. The funds have invested in a wide variety of sectors, including software, biotechnology, healthcare, engineering, manufacturing and distribution.

The £17.5m AGF was launched in February 2003 by Advantage West Midlands to invest venture capital in SMEs. Managed by Midven, its investors include Barclays Bank, the Royal Bank of Scotland, HSBC, the European Investment Fund, five local universities and the Department for Business Innovation and Skills.