Two EIS fund investments from Mercia Growth Fund 1 will go towards aiding the growth efforts of Warwick Audio Technologies and nanoTherics.
Mercia Growth Fund 1 is described as the first hybrid fund offering EIS and SEIS investment opportunities and was launched in 2012 before hitting £2 million in size.
New investment Warwick Audio Technologies develops an audio product which consists of a flat and flexible loudspeaker laminate. The investment made in the Coventry-based business will help with the delivery of ‘key’ commercial contracts in the ceiling speaker, audio visual and automotive sectors.
Fellow new portfolio company nanoTherics develops and retails magnetic nanoparticle-based produces for the life science research industry. Its new capital will be used for the expansion of its sales infrastructure and products under development.
Mark Payton, managing director of Mercia Fund Management, comments, ‘Warwick Audio Technologies and nanoTherics are truly exciting and transformational businesses now rapidly expanding their growth on the back of substantial commercial progress.’
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The two investments follow on from the March announcement that the firm was launching its Mercia Growth Fund 2, expected to close in June 2013.
Payton adds, ‘We have now launched two Growth Funds offering hybrid investment opportunities as they are not only idea vehicles for professional investors, but also support the invests as they meet their business objectives.’
Mercia Fund Management is a venture capital fund manager with £17 million under active management.
To date, the firm has injected £7 million into EIS and SEIS-qualifying businesses, levering an extra £50 million from syndicate backers. It also recently announced that Forward Group has become a shareholder.