Venture capital firm Midven has given a boost for young businesses in the West-Midlands by securing £2 million of funding from the European Regional Development Fund (ERDF).
The money takes the size of Midven’s Early Advantage fund to £10 million. The fund provides capital to help high growth start-up and early stage businesses in the West Midlands progress and become profitable.
It provides investment, alongside business angels and other private sector investors for small, high growth businesses at start-up and early-stage in the region.
The fund can make an initial investment of up to £125,000 if matched by private money and can invest up to a further £375,000 in subsequent rounds. The investment team will actively work with companies seeking investment to source the necessary private sector match funding.
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The £10m fund has been created through investment from the Department of Business Innovation and Skills – along with the latest ERDF grant. The most recent cash injection is managed by the Department for Communities and Local Government.
The Early Advantage fund has generated significant results so far with £6 million invested in 41 companies and 252 jobs created or safeguarded.
The fund’s impact is facilitated by Midven’s ongoing strategic mentoring and management support post-investment which gives businesses additional expertise that they can use to grow their businesses.
It also leverages private sector co-investment into companies to ensure they have the required investment to reach their potential.
Midven Early Advantage fund investment director Duncan Kerr said the fund is intended to help business that are looking to grow and face “inevitable bumps along the way”.
“Due to the general lack of funding available on a regional basis, it’s welcome news that the ERDF has made an additional £2 million grant to enlarge the existing Early Advantage fund,” he added.
“This will enable the fund to provide further support for the continuing growth of its existing portfolio companies and to invest in new, additional companies within the West Midlands.”
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