Technology companies operating in the medical, clean energy, electronics, telecoms and software sectors will be the target of a newly launched Enterprise Investment Scheme (EIS) fund from Mercia Fund Management.
The Mercia Growth EIS Fund aims to raise between £6 and 10 million in order to make equity investments of up to £1 million in high-growth technology businesses. According to a statement from Mercia, the fund will target investments which have ‘modest capital needs’ and are four years away from profitability or exit.
To boost its portfolio, Mercia, which has a relationship with eight universities, including Birmingham and Warwick, is also expanding its geographical footprint by actively seeking new investments outside the Midlands region to those across central England.
Mark Payton, managing director of Mercia, comments, ‘We see our EIS Fund building on the successes of Mercia Funds 1 and 2 which have collectively invested in excess of £9 million and leveraged additional funding of circa £50 million in 34 businesses to date.
The Mercia Growth EIS Fund closes on 5 April next year.