12 May 2015
Leading venture capital firm Midven has succeeded in gaining an additional £2 million in investment for young and growing companies within the West Midlands from the European Regional Development Fund (ERDF).
Midven independently manages the Early Advantage fund, which provides £8 million in capital to help high growth start-up and early stage businesses in the West Midlands progress and become profitable. With the further £2 million grant from the European Regional Development Fund (ERDF) which is managed by the Department for Communities and Local Government, the Early Advantage fund size has now increased to £10 million.
“As start-ups and early stage companies develop and grow, they face inevitable bumps along the way and businesses have constant cash requirements to overcome them. Due to the general lack of funding available on a regional basis, it’s welcome news that the ERDF has made an additional £2 million grant to enlarge the existing Early Advantage fund. This will enable the fund to provide further support for the continuing growth of its existing portfolio companies and to invest in new, additional companies within the West Midlands.” said Duncan Kerr, Investment Director of the Early Advantage Fund at Midven.
The Early Advantage fund has generated significant results so far with £6 million invested in 41 companies and 252 jobs created or safeguarded. The fund’s impact is facilitated by Midven’s ongoing strategic mentoring and management support post investment which gives businesses additional expertise that they can use to grow their businesses. The Early Advantage fund also leverages private sector co-investment into companies to ensure they have the required investment to reach their potential.
Midven is actively seeking to invest in entrepreneurs who wish to raise capital for their start up or early stage business and encourages them to get in touch.
Midven is the leading Midlands-based provider of venture capital funding to early stage and established businesses. The Birmingham-based venture capital firm currently manages five funds representing a total of £76m under management. The funds have invested in a wide variety of sectors including software, biotechnology, healthcare, engineering, manufacturing and distribution. The Midven team has an established reputation for delivering solid commercial experience and creative business solutions to help their portfolio companies achieve exceptional outcomes.
Midven’s now £10m Early Advantage fund provides investment, alongside business angels and other private sector investors for small, high growth businesses at start-up and early-stage in the West Midlands. The fund can make an initial investment of up to £125,000 if matched by private money and can invest up to a further £375,000 in subsequent rounds. The investment team will actively work with companies seeking investment to source the necessary private sector match funding. The £10m fund was created through investment from the Department of Business Innovation and Skills and grants from the European Regional Development Fund.
For more information, please visit www.midven.co.uk or follow @Midven on Twitter.
About the Early Advantage fund
The Early Advantage fund project is part financed by the West Midlands European Regional Development Fund Programme 2007 to 2013. The Department for Communities and Local Government is the managing authority for the European Regional Development Fund Programme, which is one of the funds established by the European Commission to help local areas stimulate their economic development by investing in projects which will support local businesses and create jobs.
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