Funding for companies which address a clear market need and have the potential to achieve significant growth.
- For Companies Seeking Equity Investment for Growth
- Most Sectors Eligible with Focus on New Technologies
- Investment to Pursue Growth Strategies and Strengthen Management
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The Venture Fund can invest up to £1m and is looking for companies with good products that address clear market needs and have the potential to achieve significant growth.
The Venture Fund is managed by Mercia Asset Management and aims to identify and assist the region’s rising stars. It typically makes equity investments of between £200k and £1m in relatively early-stage companies which have a good product and ambitious growth plans.
The Venture Fund is particularly suited to companies which are developing new technologies and solutions to help tackle current challenges, from healthcare to climate change. It supported Consett-based electric vehicle charging company Elmtronics, which received equity investment from the fund and was subsequently acquired by Europe’s largest renewable energy producer Statkraft.
Mercia operates nationwide and, as well as the Venture Fund, has other sources of capital which it can use to make further investments to help companies to scale-up. It also seeks to provide investees with practical support and to help them to build their boards by matching them with experienced entrepreneurs from their industry who have done it all before. After securing a £500k Venture Fund investment, Newcastle based tech recruitment platform Haystack appointed Ben Legg, former Chief Operating Officer of Google Europe, as a non-executive director.
Other companies which have received Venture Fund investment include Notify Technology, which aims to save lives by helping companies to log accidents and improve health and safety at work and which now has users in over 100 countries. Sunderland based Troo is an innovative energy brokerage platform which enables SME businesses to drive down their energy costs and South Tyneside’s Trench Networks is a specialist internet connectivity service provider which enables remote or unconnected locations such as construction sites, quarries, factories or healthcare settings to receive a reliable internet connection.
The investment process
Share your business plan with Mercia, detailing your company’s management team, its product and market, future plans, current and forecast financial information and funding required.
Mercia will meet with you to find out more about your business and plans and to reach agreement in principle with you on the terms for investment.
Mercia will undertake due diligence on your company and the information you provide to verify it and confirm that investment is appropriate. Investment funds are provided following signature of legal agreements.
Interested in applying?
Check your company’s eligibility and suitability by phone or email with North East Fund or Mercia Asset Management. Discuss your product, future plans and funding requirements to check whether you should prepare and submit an application for investment.
Contact Mercia Asset Management: