Tech start-ups thriving in South Yorkshire
SOUTH Yorkshire Investment Fund (SYIF) is on target to fully invest a £4.65m Seedcorn Fund in local businesses.
A total of £2.15m of the fund, which was created to support technology ventures seen as too high risk by mainstream investors, has been invested with the remaining £2.5m scheduled for follow-on investment by the end of the year.
The pilot scheme was launched by SYIF in April 2007 to test ways of financing innovative early stage businesses to help take new technologies to market.
Jonathan Dixon, Deputy Chief Executive at South Yorkshire Investment Fund, said that demand for the Seedcorn Fund had been much greater than anyone expected.
“It provides the strongest possible evidence that technology businesses are alive and kicking in South Yorkshire,” he said.
“The lessons learned from the management of the pilot will be used to guide the design of a bigger, regional Seedcorn Fund that is expected to go live from 2009.”
SYIF will continue to manage the Seedcorn investment portfolio to support businesses and ensure returns can be maximised, with the aim being to create a self-sustaining legacy alongside the main SYIF Funds.
“We are exploring options to raise a little more money to extend the Seedcorn Fund for clients with interesting proposals that were just pipped to the post,” added Mr Dixon.
“We would therefore still like companies to contact us and, if available, provide us with their business plan in preparation for when the Seedcorn Fund will again be on offer.”
SYIF provides loan and equity linked investments ranging from £15k to £2.5m specifically to help small and medium businesses meet the gaps in funding they need for growth and development.
