Invest NI, the economic growth agency has launched two new equity funds offering investments to high growth potential SMEs.
The TechStart II Seed Fund and Crescent Capital IV Development Fund have been created as part of Invest NI’s Access to Finance portfolio which provides loan and equity funding to SMEs.
William McCulla, Director of Corporate Finance at Invest NI said that “the previous TechStart and Crescent funds helped over 60 companies raise equity investment to realise their growth ambitions, create jobs and bring new products to market.
“Future investments will support Northern Ireland companies to grow in global markets, encourage entrepreneurship and help to rebalance and rebuild our economy by driving private sector growth.”
Techstart Ventures will manage the £30m TechStart II fund and will offer initial investment rounds averaging around £300,000 and up to £2million in any one company over a series of rounds.
Invest NI says that the Proof of Concept grant programme will remain a key offering, with companies being able to obtain grant funding ranging from £10,000-£35,000 to progress concept ideas.
Jamie Andrews is a Partner in Techstart Ventures and commented that their “renewed focus will be on start-up companies and small businesses in the early stages of innovation.”
He also stated that Techstart has helped nearly 300 businesses bring forward growth plans and maintained that “the new fund will continue to work with the local universities to provide investment and assistance in university spin-out companies.”
The £65m Crescent Capital IV fund will be managed by Crescent Capital and will offer companies within the technology, life sciences and manufacturing sectors investments of up to £2.5m in initial investment rounds, and up to £5m in any one company.
Colin Walsh, Partner at Crescent Capital, said that “this is the fourth venture capital fund to be established by Crescent which has made investments in 38 companies across its three prior funds.”
TechStart II and Crescent Capital IV are part financed by the European Regional Development Fund under the EU investment for Growth and Jobs Programme 2014-2020.
