Midven vows investment will continue despite AWM cuts

SPECIALIST venture capital company Midven has said its £18.4m Exceed fund will continue to support high growth businesses in the West Midlands despite having its funding slashed as part of a £35m round of cutbacks by regional development agency Advantage West Midlands.

AWM announced earlier this month it would cut its investment in Midven’s Growth Equity Fund, known as The Exceed Partnership, by £1.15m this year.

However, Midven said the fund’s recent success in securing LDC as an investor had resulted in additional support from the European Regional Development Fund (ERDF), thereby offsetting the RDA’s contribution.

The Exceed fund invests in high-growth businesses in the West Midlands region requiring between £250,000 and £750,000 of investment. The fund, which started in March this year following LDC’s investment, has already committed more than £500,000 to help several SMEs realise their growth potential.

Midven chief executive Tony Scott said with imminent cuts to government-backed investment projects, businesses needed to remain optimistic as many funds were still looking to invest.

“Midven’s funds have been unaffected by government cuts,” he said.

“Businesses are finding it increasingly hard to raise finance, but many investors are still keen to, and still able to, invest in the right company.”

The Exceed fund is one of five investment funds managed by Midven. Companies which have received investment from Midven operate across a wide range of sectors including healthcare, biotechnology, software and services.
Midven is a privately owned commercial fund manager with a successful track record of investing in SMEs in the Midlands. Its five funds represent £61m under management.

The £18.4m Exceed Fund was established in December 2009 to invest in high growth businesses in the West Midlands. Managed By Midven, in addition to LDC its investors include AWN and the ERDF.