£8m fund launched to help new start-ups

BUSINESS leaders have welcomed the establishment of a new £8m investment fund created to support the West Midlands’ brightest and most innovative companies.  

Emerging small and medium enterprises with ambitions to grow could be eligible for a share of the new Early Advantage Fund, which is aimed squarely at helping a new generation of entrepreneurs become tomorrow’s world beaters.

Managed by Birmingham-based Midven, the EAF is backed by regional development agency Advantage West Midlands and the European Regional Development Fund.

Midven will officially launch the fund and announce the first investment at a reception in Birmingham tonight.

One of the region’s best known business leaders, Dr Norman Price, who is also chairman of the Regional Finance Forum, said the fund was exactly the sort of support that SMEs and owner managed businesses needed.

“It’s aimed at businesses with strong growth prospects where an investment of between £25,000 and £400,000 will make the difference – encouraging economic growth and providing a bedrock for future development.

“Small businesses are the life blood of the region and have the potential to become the world-leaders of tomorrow. But they need financial help. That’s where this new and innovative fund comes in,” said Dr Price, himself a serial entrepreneur.

The EAF fund is aimed specifically at early stage companies in the West Midlands across a wide range of market sectors. The fund’s investment must be matched by private investment and Midven will be looking to work closely with regional angel networks, and local and national institutional investors.

Andrew Muir, Midven director, said: “This funding couldn’t come at a better time. The West Midlands is increasingly becoming a centre for innovation and technology and many smaller and developing companies should be able to take advantage of this capital.

“We’re actively seeking energetic and entrepreneurial management teams and companies with strong growth potential that want to give their business the edge over the competition.”

Mick Laverty, AWM chief executive, said the funding was important as good access to finance was a crucial factor in the development of fledgling businesses.

He said: “I’m delighted to see the Early Advantage Fund come on to the market as I know how crucial access to suitable finance is for the health and wellbeing of the West Midlands’ economy.

“Investing in initiatives like the Early Advantage Fund is our response to business concerns, as well as a demonstration of our commitment to creating a culture of innovation and enterprise.”