The fund has committed its maximum initial investment of £330,000 and as part of the deal former Amstrad CEO David Rogers will become TBiConnect’s chairman.

Nick Simmonds, investment manager at venture capitalist YFM Group, which manages the fund, comments: ‘TBiConnect has developed a proven solution to address the business problems faced by many organisations handling thousands of financial transactions.’

TBiConnect’s e-invoicing system is targeted at businesses handling at least 100,000 financial transactions a year, and manages the exchange of invoices, remittances and purchase orders between client and supplier via the internet. Its clients include supermarket supplier Enterprise Foods and train operator First Great Western.

South West Ventures has assets of £25 million and provides early-stage investment to companies in the South West of England. Like all the Government-backed regional venture capital funds, it may invest up to £330,000 initially, with follow-on funding of £330,000 after six months. To date, the fund has invested £6.9 million in 24 companies.

YFM Group also manages two other regional venture capital funds: the Capital Fund (for London) and the Yorkshire and Humber Equity Fund.