Fund chairman Sir Nigel Rudd describes the project’s launch last week as an ‘exciting start’ adding that the announcement of ten companies which have been found suitable for funding demonstrated its popularity.

The fund has offices in Edinburgh, Birmingham and London, and aims to invest about £2 million to £10 million in small and medium-sized enterprises that have sales between £10 million and £100 million a year.

Sir Nigel comments, ‘I believe the Business Growth Fund offers a real ray of hope to companies that are emerging out of recession. Companies that have the confidence, ambition and ability to seize new opportunities and new markets in the UK and abroad.  Our ambition is nothing less than to create the household business names and listed companies of tomorrow.’

Business Secretary Dr Vince Cable adds, ‘The Business Growth Fund is ready to make substantial equity investments into ambitious mid-cap British companies who are set to create the business success stories of the coming years. To see the fund ready to invest so quickly is greatly encouraging and I look forward to the first successful firms receiving funding.’

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The fund is backed by the UK’s top four banks, and the Spanish bank Santander, and has been launched after a number of government reports found SMEs were not receiving enough capital from the country’s major financial institutions.