Bringing together private and public sector capital, Enterprise Capital Funds (ECFs) provide equity investments for businesses in the UK.
Set up in 2006, there are now 16 ECFs in Britain worth £543.5 million. Comprising £321.2 million of government funds, a total of £203.7 million has been invested in 169 companies to date.
Managed by a number of well-known venture capital firms including MMC Ventures, Notion Capital and Passion Capital, new funds are determined by a rolling investment programme.
In 2008, management of of ECFs, along with other Department for Business, Innovation & Skill (BIS) equity funds including the Small Firms Loan Guarantee (SFLG), was transferred to Capital For Enterprise (CfEL). When CfEL become part of the British business bank in October 2013, responsibility for ECFs again shifted.
The findings, from the ICAEW’s Corporate Finance Faculty, show that a large proportion of ECF capital is still to be invested. Furthermore, the newer, and more active funds have been shown to be larger in size.
A wide range of sectors are being targeted by ECFs, evidence that the funding mechanism is an important source of capital for entrepreneurs seeking finance.
All figures sourced from the ICAEW’s Corporate Finance Faculty
Notion Capital 2
Founded: 2012
Size: £76.3 million
Focus: Cloud computing and software-as-a-service firms
Proportion from UK government: £25 million
Amount invested to date: £19.5 million (13 businesses)
Exits: 1
Status: Making investments
More on Notion Capital 2:
- Jos White’s Notion Capital makes first play from second fund
- Shutl set for US take-off after backing from e.ventures and Notion Capital
- DueDil raises $17 million round to continue ‘exponential’ growth
Longwall Ventures ECF
Founded: 2012
Size: £40 million
Focus: Science, engineering, technology business-to-business ventures at early stage
Proportion from UK government: £25 million
Amount invested to date: £3.5 million (8 businesses)
Exits: n/a
Status: Making investments
More on Longwall Ventures ECF:
- Oxford Photovoltaics raises funds from Longwall Ventures
- Longwall Ventures named as 12th ECF
- MODE Diagnostics secures funding and begins sales of screening kit
Foresight Nottingham Fund
Founded: 2013
Size: £40 million
Focus: Nottinghamshire-focused high-growth businesses
Proportion from UK government: £25 million
Amount invested to date: £2 million (2 businesses)
Exits: n/a
Status: Making investments
Passion Capital
Founded: 2011
Size: £37.5 million
Focus: Digital media and consumer technology businesses looking for seed capital
Proportion from UK government: £25 million
Amount invested to date: £18 million (39 businesses)
Exits: 4
Status: Making investments
More on Passion Capital
- Wedo links up with Passion Capital and MMC Ventures
- Coinfloor kicks off Bitcoin operations with help from Passion
Episode 1 Investments
Founded: 2013
Size: £37.5 million
Focus: Minimum viable product stage software start-ups
Proportion from UK government: £25 million
Amount invested to date: £2.1 million (four businesses)
Exits: n/a
Status: Making investments
More on Episode 1 Investments:
- Online platform for buying new cars backed by Episode 1
- Irish e-commerce player Scurri raises €1.2 million
Panoramic ECF 1
Founded: 2010
Size: £34 million
Focus: Small and medium-sized businesses with revenues of over £1 million
Proportion from UK government: £20 million
Amount invested to date: £10.7 million (8 businesses)
Exits: 1
Status: Making investments
More on Panoramic ECF 1:
- Scottish ECF fund invests in Dog Digital
- Panoramic Growth Equity takes £1 million stake in Concorde
- Solfex Energy Systems sold to Travis Perkins
Amadeus IV Early Stage Fund
Founded: 2013
Size: £33.2 million (so far)
Focus: Disruptive technologies at the seed and early stages
Proportion from UK government: £15 million
Amount invested to date: £0
Exits: n/a
Status: Making investments
More on Amadeus IV Early Stage Fund
- Boost for UK tech start-ups following first close of Amadeus fund
- Business bank supports Amadeus
- Alex Van Someran joins Amadeus from UKTI
MMC Enterprise Capital Fund
Founded: 2008
Size: £30 million
Focus: Tech-enabled businesses which are revenue generating
Proportion from UK government: £20 million
Amount invested to date: £22.4 million (13 businesses)
Exits: 0
Status: Making investments
More on MMC Enterprise Capital Fund
- Online clothing retailer gets £1.5 million from MMC
- MMC injects £1.5 million into Interactive Investor
Dawn Capital Enterprise Fund
Founded: 2006
Size: £30 million
Focus: Traditional industries adopting innovative technologies
Proportion from UK government: £20 million
Amount invested to date: Undisclosed (12 businesses)
Exits: 0
Status: Not making investments
More on Dawn Capital Enterprise Fund
Oxford Technology ECF
Founded: 2008
Size: £30 million
Focus: Early-stage firms in the science/healthcare, engineering and software sectors
Proportion from UK government: £20 million
Amount invested to date: £22 million (19 businesses)
Exits: 2
Status: Not making investments
More on Oxford Technology ECF
- Oxford biotech spin-out raises £1.55 million
- Acunu attracts £2.2 million for product launch
- OrganOx nets £2.75 million
Seraphim Capital Fund
Founded: 2006
Size: £30 million
Focus: Disruptive and scalable technologies in the post-revenue, pre-profit stage
Proportion from UK government: £20 million
Amount invested to date: £25.2 million (12 businesses)
Exits: 1
Status: Not making investments
More on Seraphim Capital Fund
Sustainable Technology Fund
Founded: 2006
Size: £30 million
Focus: Cleantech ventures in waste, recycling, energy efficiency and biotech
Proportion from UK government: £20 million
Amount invested to date: £24 million (6 businesses)
Exits: 0
Status: Not making investments
More on Sustainable Technology Fund
Catapult Growth Fund
Founded: 2006
Size: £30 million
Focus: Early-stage businesses in most sectors
Proportion from UK government: £18 million
Amount invested to date: £25.5 million (20 businesses)
Exits: 1
Status: Not making investments
More on Catapult Growth Fund
- Ambitious drug developer Oxford Genome Sciences closes deal
- Biofortuna closes £1.1 million transaction with Catapult
Regents Park Partners II ECF
Founded: 2014
Size: £30 million
Focus: Early-stage tech fund management arm of London Business School
Proportion from UK government: £20 million
Amount invested to date: n/a
Exits: n/a
Status: Making investments
More on Regents Park Partners II ECF
IQ Capital Fund I
Founded: 2006
Size: £25 million
Focus: Seed and early-stage high-tech ventures
Proportion from UK government: £16.7 million
Amount invested to date: £22.8 million (14 businesses)
Exits: 3
Status: Not making investments
More on IQ Capital Fund I
- Game on for Phonetic Arts
- Return investment for Cambridge start-up Neul
- Sirigen raises funds for commercialisation
Amadeus & Angels Seed Fund
Founded: 2006
Size: £10 million
Focus: Technology at the seed stage
Proportion from UK government: £6.5 million
Amount invested to date: £6 million (8 businesses)
Exits: 1
Status: Not making investments
More on Amadeus & Angels Seed Fund
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