AXM Venture Capital has invested funds from the North West Fund for Digital & Creative in software business Connect Technology.
The North West Fund for Digital & Creative is managed by AXM Venture Capital and is part of the £170 million North West Fund financed by the European Regional Development Fund and the European Investment Bank.
Connect Technology, which provides software services aimed at the nursery and childcare market, is using the undisclosed funding amount to develop ‘innovative and game changing’ systems.
Founded by Chris Reid and with a staff of 13 at its Burnley headquarters, Connect Technology is looking to focus more on larger private sector chains.
Reid says that AXM Venture Capital share in the business’ ‘passion’ to create ‘great’ systems that allow childcare staff to spend more time nurturing the children in their care.
The deal marks the second time the Digital & Creative fund arm has closed a deal in the last three months. In June it backed Adaptis Solutions, a business which supplies software to the transport and travel management markets.
The North West Fund for Digital & Creative provides finance of between £50,000 and £2 million to businesses across sectors including television production, software development, social networking tools and e-commerce.
Speaking on its investment, David Smith, investment director at AXM Venture Capital, says that it has ‘strong expectations’ that Connect Technology will in the short term become the leading vendor in its market.