Midven reports 80% growth in investments

VENTURE capital fund manager Midven has reported an 80% growth in its level of investments in Midland SMEs in the first six months of 2011.

The period saw Midven’s £18m Exceed – Midlands Advantage Fund invest in four separate businesses – compared to just one business in the first half of 2010. Meanwhile, its Early Advantage Fund supported nine businesses – compared to six businesses in the first half of 2010.

Midven, which manages five funds with some £61m under management, invests in high growth prospect businesses across a range of sectors including software, telecommunications, services, healthcare and medical technology, engineering and manufacturing.

Midven has also reported a 33% increase in the number of ‘follow-on’ investments to support further growth.

Roger Wood, Midven director, said: “It’s been an encouraging first half. The level of enquiries has been growing in part fuelled by an increasing confidence in the region as a place in which to develop successful businesses.

“Equity investment is being viewed as an alternative to debt but we would actively encourage more companies to take advantage of the venture and expansion funds that are available.”

He said the organisation had never been busier and had a significant number of new investments in the pipeline. Enquiries from companies needing investment are also strong.

“The challenge for us is to identify the real growth opportunities – and that means we need more businesses coming forward. Supporting SMEs and early stage businesses is fundamental to this region’s growth and prosperity. The more companies we can help get off the starting blocks and performing strongly, the better,” he added.

Midven’s figures build on those from the private equity body BVCA which revealed that in 2010, the West Midlands outperformed the traditionally buoyant south east in terms of percentage growth of investment activity. Some £1bn was invested in the region in 2010, compared with about £1.25bn in the south east.                                    
“The region’s growth has been significant. In 2009, the investment level for the West Midlands was around £0.4bn and whilst it grew in 2010, that of the south east fell. It would appear from our own figures for 2011, that the growth trend in investment is continuing,” said Mr Wood.